For Michigan, like many other states, providing noninstructional services strains public school district budgets. School districts provide more transportation, food, maintenance, and counseling services than ever before. In some cases, noninstructional expenses exceed classroom expenses. Seven states, including Michigan, employ more nonteachers than teachers. Consequently, Michigan spends less than 50 cents of every education dollar in the classroom. Without commenting on whether school districts should be providing so many noninstructional services, this guide offers ways for Michigan school districts to manage effectively and efficiently the noninstructional aspects of public education while remaining competitive in the new school-choice environment. This is not a comprehensive assessment of how all Michigan school districts are operating; rather, it is a selection of good ideas and their implementation. Specifically, this guide suggests six "habits" for fiscal responsibility: (1) Minimize administrative costs; (2) take advantage of cost savings from outsourcing noninstructional services; (3) manage employee health benefits effectively; (4) structure capital costs effectively; (5) participate in Michigan's schools-of-choice program; and (6) reform collective bargaining. This guide includes examples of fiscally responsible, as well as fiscally irresponsible, school districts in Michigan and other places. (Contains 2 figures and 53 endnotes, some of which include references.) (WFA)