These materials from Beaverton Schools, District Number 48 (Oregon) provide an annual program review process within the context of the regular planning and budgeting processes. Information obtained from the review process (an analytic and decision-making process) is intended to serve as a basis for determining what program levels should be retained in the event the district has insufficient operating revenues to maintain current programs or desires to increase selected programs. Major characteristics and objectives of the process are given along with a flow chart and time line of program review activities. Decision units (divisions and departments) and decision packages (functions or activities carried out by the decision units) are described. Further aspects of the process are covered under the following headings: (1) targeting potential reduction; (2) major assumptions; (3) ranking decision packages; and (4) budget preparation. Instructions for completion of program review forms are followed by the sample forms. A sample of a completed program review for a school transportation program is provided. (EM)