The rising cost of public education and the resulting pressures for higher local property tax rates have caused the financial management of public schools to come under increased scrutiny. This study applies planning programing budgeting systems (PPBS) to school district financial management. A program structure is described that relates all resource-consuming activities to objectives and that includes estimating relationships that model the future economic environment of the district. The study applies PPBS concepts to a school district in Dayton, Ohio. A prototype PPBS is tested and exercised on a Monte Carlo computer simulation model of the Northmont economic environment. (Author)