In 1978 the state of New York established the Regents Competency Testing Program to ensure that all high school students would achieve a state standard of competency in reading, writing, and mathematics prior to graduation. That same year the Resource Allocation Plan was established to help schools in improving pupils' achievement in the basic skills. This manual first presents the background, governing principle, and goals of the Resource Allocation Plan, then sets forth its management system in terms of policies, roles, and procedures. Policies are numbered, listed, and explained along with the citations tracing their origin. The organizational positions are defined and their responsibilities listed under the heading of "roles." Twelve procedures list what is to be done, accompanied by the actors involved and a step-by-step list of the actions to be taken. Four different forms used in different stages of the process are included. The last section of the manual briefly outlines the information system and the evaluation design. (MLF)