A school budget is a planning document that links financial decisions to educational policy. This booklet is a brief overview of how such budgets are derived in California. It is intended for new administrators, school board members, and interested teachers, parents, and community members who wish to learn about school budgeting and become more effective participants in finance-related decisions. It is a guide for understanding the content of budgets, the flow of the budget process, and the management of budgets. It describes what a budget looks like, detailing how fund accounting is the foundation for school budgeting. The topics covered are: the line-item budget; program budgets, with a look at budget priorities; state-reporting forms, which can provide a basis for comparison; components of the new standardized account code structure; the criteria and standards for reviewing school district budgets, which include a sample midyear budget report and a budget calendar; building the budget; projecting revenues; estimating expenditures; understanding how budgets are linked to educational decisions; school-site budgeting; monitoring the budget; how an average district devises its budget; how to analyze a budget; the impact of regional relationships on finances; long-range planning; and a sample of a financial projection. (Contains 10 figures.) (RJM)