Written policy by local school boards is essential for efficient operation of the total educational program. At least one-half of the nation's 20,000 school boards have not established a written policy statement or kept one updated with new methods. This research established a taxonomy of terms that should be included in such a statement along with exhibit documents that illustrate the taxonomy. The 12 terms are school district organization, school board operations, business management, facility expansion program, students, general public relations, fiscal management, general school administration, personnel, negotiations, instructional program, interorganizational relations, and relations with other education agencies. Recommendations include: (1) developing workshops for school board members and school administrators in policy development, (2) developing an information clearinghouse in policy development, and (3) adapting this research to community college governing boards. (LN)