Under the Kentucky Education Reform Act (KERA), School-Based Decision Making (SBDM) is the provision that creates school councils and delegates to them the authority to make important educational decisions to improve student performance. This paper describes findings from the third year of a 5-year study of SBDM that focused on early examples of connections between council decision making and changes in curriculum and instruction. Data were derived from interviews in 13 schools in 9 Kentucky districts as well as several statewide data sources. Findings indicate that more schools are establishing councils, although the rate of increase has slowed, and that councils are tackling more complex issues. Most council decisions continue to have a nonacademic focus. Parent involvement in councils was limited and instructional changes were visible. Features of councils that are effectively involved in decisions about curriculum and instruction are identified. However, councils will continue to face the following challenges: understanding new expectations, blending traditional with new approaches, and debating differences constructively. For councils to continue to evolve, they need strong site leadership, instructional guidance, opportunities and time to learn, and survival skills for making the transition. One table and a map of regional service centers are included. (LMI)