When people talk about school district efficiency, their first thoughts are about financial management. Are districts balancing their budgets, paying bills on time, and maximizing their revenues? This report takes a closer look at financial management in California school districts. The report is a summary of the 2006 research study, "School District Financial Management," conducted by EdSource and School Services of California as part of the "Getting Down to Facts" project. After a brief overview of the conditions under which school districts generally operate in California, this report looks at the extent to which districts are fiscally healthy based on a measure developed as part of the study. It examines how conditions outside a district's control relate to fiscal health and the complexities involved in developing strategies to help struggling districts. This report also looks at how districts vary in the qualifications and stability of the responsible personnel, the nature of their governance and leadership, and their management practices. It considers fiscal best practices, including which practices show a relationship to district financial health. Finally, it looks to the future, including a discussion of ways to improve the fiscal health of the state's school districts. (Contains 3 figures.)