The material in this handbook has been designed for continuous reference and use by administrators and school board members in formulating sound school budgets. Statements of practices and policy express the general situation and simply provide a starting point. Practical applications in union free, central, and city school districts in cities of less than 125,000 are emphasized. Although the approach has been to the formulation of the annual budget, the principles outlined can be adapted to a "long-term" budget. The subject matter covers (1) general considerations in school budgeting, (2) compilation of a budget, (3) the school budget calendar, (4) the formal proposed budget document, (5) the "popularized" budget, (6) evaluative criteria and helpful suggestions, (7) program budgeting, and (8) the budget in operation. Appendixes contain decentralized budgeting worksheets, cooperative budgeting worksheets, and a formal budget document. (Author/JF)