This bulletin focuses on four aspects of budget development and management in local school districts. Chapter 1 describes the general budget development process, highlighting variations some Oregon districts have found useful. The chapter outlines the responsibilities of educational agencies and district staff members at various levels and reviews the staff's role in projecting enrollments, estimating revenues and expenditures, setting goals, evaluating programs, and organizing budgetary information appropriately. Chapter 2 discusses the essential components of sound budget management, including selecting and training qualified personnel, organizing and testing the business system, maintaining a suitable cash reserve, and decentralizing district budgeting processes. Chapter 3 covers cost control in the areas of salaries, insurance, purchasing, inventory, food services, and cocurricular activities. The fourth chapter describes tools that local districts have used effectively to encourage public support, with special emphasis on the use of citizen advisory committees. The bulletin concludes that the two primary factors in successful budget management are a dedicated, professional staff and a proud and involved community. References, a list of school officials interviewed for the bulletin, and an outline of the competencies recommended for school business officials by the Oregon Association of School Business Officials supplement the report. (PGD)