This case study of a small suburban school district in the San Francisco Bay Area examines the interplay among individuals and groups within the district who make and implement policy decisions. The issue of awarding credit for experience-based learning focuses and directs the study. As an introduction to examination of the ways decisions are made, key policy makers (school board and district staff) are described. The transformation of proposals into approved programs is illustrated by following the district's experience-based educational programs--work experience, experience-based learning, independent studies, and outside-of-school experience--through the formal and informal decision-making channels. A discussion of the impact of state policy on the local level considers Senate Bill 90 (which limited local school board revenue-raising ability), institution of collective bargaining with teacher's unions, and Proposition 13, which imposed extensive limitations on local budgets. A final section enumerates these conclusions: the local level must balance the demands of federal, state, and local levels; federal level impact has been minimal, but state level policy has restricted district behavior; local decision makers feel that their powers are limited and that state and federal decision makers do not understand local needs and concerns; and effective communication must be established among all levels. (YLB)