Prospects for Illinois public school revenues and school district reorganization in the 1980's, considered in the context of prospects for the Great Lakes region as a whole, are affected by fundamental demographic and economic changes. The region has had a lower population growth rate since 1970 than the rest of the country, and a slower growth in per capita income. Between 1970 and 1980, Illinois had a 15.9% decline in enrollments, a 13.5% reduction in number of public schools, and a 14% reduction in number of school districts, compared with 10.7%, 5.1%, and 11% respective national decreases. Illinois school revenues between 1970 and 1980 shifted from less local funding (-5.9%) to more federal (+4%) and state (+1.9%) support. Changes in Illinois school funding since 1969 included increased, then decreased, state support. A 1973 study recommended school district reorganization based on minimum enrollments, but was not implemented. The 1981-82 Illinois Public School Finance Project proposed a Resource Cost Model for school finance (based on cost of education indices and program cost differentials) which would adjust state aid to local districts according to costs of local educational programming and differences in local tax bases. A 1977 state law on farmland tax assessment procedures could prompt considerable school district reorganization. (MH)