The goal of this paper is to explore the effects of micro-budgeting decisions and show how they might support or hamper district reform strategies. The study draws on public and private sector resource allocation literature to identify key elements of resource allocation decisions. These elements are used to highlight different allocation practices used in two urban districts, and the findings illustrate the importance of understanding how district allocation practices determine the distribution of resources within districts. This paper also provides a framework for comparing resource allocation mechanisms in the context of four district reform strategies: (1) targeted resources to narrow the achievement gap; (2) decentralized reform with school-based accountability; (3) centralized reform or "managed curriculum," and (4) integrated (or personalized) services. For district leaders pursuing any one of these reform strategies, this analysis should serve as a roadmap for more strategic resource allocation. A tabular summary of all categorized allocations is appended. (Contains 4 tables, 4 figures, and 6 footnotes.)