This report is the outcome of a study conducted to review and assess the development and the advantages and disadvantages of Illinois' present system of financing community colleges; to survey and evaluate the financing systems of other states with highly developed public educational systems; to assess the major alternative schemes of financing for the future; and to make recommendations as to specific changes in the financing system, including a plan for implementing these changes. Twenty recommendations are summarized in section 1 followed by a description of the study, projections of enrollments, costs, and revenues through 1980, and plans for funding both operations and capital improvements. (MJK)