Two fundamental purposes of this guide are to aid school officials in the development of district budgets and to suggest ways and means of interpreting a budget to the public. This edition is in response to the changes in budgeting procedures, alterations and additions to state statutes, and modifications in the state school support formula that needed to be noted and incorporated in a revised edition. The guide is arranged in two sections. The first section, on the budgeting cycle, contains chapters on the budget document and its preparation, presentation, administration, and evaluation. The second section concerns concepts, provisions, and policies of budgeting. Topics covered are general state aid, program budgeting, pro-rating expenditures and indirect costs, the budgeting calendar, and suggested school board policies related to budgeting and financial operations. Additional information contained in the appendixes includes a bibliography, statutory provisions on budgeting, various illustrations, and a glossary. (Author/MLF)