Illinois' education finance plan is described in the first of this report's two chapters, and the second chapter considers the finance plan's equity. Chapter 1 covers the state's Resource Equalizer Aid Program and the tax revenue it guarantees districts; the calculation of maximum tax guarantees and local shares; the apportionment of state aid; the proration of and ceilings on state aid; general purpose revenues; and categorical program aid. Exercises are provided to test the reader's grasp of the concepts and formulas presented. Chapter 2 discusses equity in the distribution of resources, equity in the raising of resources, disparities in district wealth, and variations among districts in local tax effort and level of expenditure. Tables provide data relevant to the aspects of school finance under consideration. Appendixes describe the calculation of attendance for tax allocation purposes; the Illinois Minimum Foundation Program used prior to enactment of the Resource Equalizer Aid Program in 1973; the equalizer aid program's provisions for growing districts; and an explanation of the sampling procedure used to generate representative data used in the text. A bibliography, a glossary, and answers to the exercises are also provided. (PGD)