Whether a participatory process for resource allocation in a public community college setting occurs depends upon several key factors: (1) the leadership style of the institutional chief executive officer; (2) the administrative organizational structure of the institution; (3) the relationship which exists between and among members of the various segments of the institutional community--students, faculty, support staff, administration, and governing board. A review of the literature indicates that no institution or program has achieved the ideal of participatory resource allocation. A process by which internal participation in resource allocation can be fostered is described for a modified bureaucratic organizational structure, augmented by an extensive joint committee system. Case studies are presented, and sample instructions and forms for budget development are appended, along with a sample statement of developmental institutional objectives, an overview of budget planning and development, background data required for resource allocation and budget development, and comparative statistical data for all community colleges in the Illinois state system. (Author/NHM)