This paper examines current school management and budgeting practices and proposes one way they can be altered to encourage more coherent, understandable schooling. This proposal is the use of school site management. This reform offers the best immediate and practical prospect for achieving the kind of fiscally and educationally responsive schools we need. Centralized school budgeting as it is now practiced has several deficiencies--it assumes sustained growth, increases educational inequalities, contributes to inefficiencies, and stifles citizen participation. The topics covered in discussing school site management as a significant reform are the school site as the basic unit of educational management, parent advisory councils, the principal as education manager, school site budgeting, the state's role in school site management, annual performance reports, collective bargaining, and parent choice of school program. The phases of implementation of such a program are also outlined. (Author/IRT)