The majority of local school districts in Pennsylvania completed reorganization during the 1965-66 school year. Since then, the Pennsylvania Board of Education has studied the reorganization problems involved in consolidating the 67 County Superintendent of Schools offices into 25 to 30 intermediate units. Funded by ESEA Title III, this study is intended to develop management tools for use by the administrations and boards of intermediate units. Specifically, the study includes the design, testing, and initial implementation of a planning-programing-budgeting system (PPBS). The system will facilitate a coordinated effort in providing educational services by the local districts and by the intermediate units. This report presents a preliminary design of the PPB system that was tested by the project staff, pilot districts, and county offices in the late summer and early fall of 1968. The procedures manuals for these studies are EA 002 751, EA 002 752, EA 002 753, and EA 002 754. (DE)