This publication reports the results of the design and development of a planning programming budgeting system for the Milford, New Hampshire, school system. The authors attempted to develop a program oriented budget rather than a line item or input oriented budget, and a model adaptable for general applications. The order of priority budgeting first, programming second, and planning third, reverses the more traditional emphasis. Time limitation prohibited detailed examination of the planning, controlling, and evaluating phases of PPBS. An introductory chapter outlines the background and application of PPBS. Three appendixes provide exhibits of budget, personnel, and enrollment accounting punch cards as well as a per-pupil budget summary. (DE)