This report provides an analysis of current inequities in school finance in Illinois, the historical roots of those inequities, and an analysis of alternative options for funding primary and secondary education. An introduction briefly describes the basis for the constitutional challenge to the current funding system. The next section describes the current state of school finance in Illinois, asking how uneven student support is from district to district. A historical section discusses the trends that have helped to shape the current situation including changes in the state's population, school enrollment changes, changes in the property wealth base, and state policies that have increased inequity. A section on tax efforts of state school districts describes low and high tax efforts and provides some examples of tax inequity. The next section offers a definition of equity. The final section describes options to improve equity including the following: (1) statewide foundation property tax option; (2) excess value state property tax option; (3) state non-residential education property tax option; (4) county assumption option; (5) increased foundation level option; and (6) income tax-property tax offset option. Included are 11 figures; 28 tables; a glossary; and 9 appendices containing data on racial and ethnic shifts, enrollment trends, assessed valuation trends, poverty impacted districts, per pupil revenue, tax rate comparisons, tax exchange, and tax rates. (JB)