Two Oregon schools districts that have been effective in managing their resources are Reedsport, a smaller district and the subject of part 1 of this bulletin; and Beaverton, one of the largest districts in the state, the focus of part 2. The Reedsport district plans the use of its funds based on a goal-setting process in the areas of instruction, finance, and maintenance. Cash flow projections, increased revenue through investment, self-supporting lunch programs, and contracts for transportation and swimming pool management are among the successful fiscal management strategies initiated by the district. The Beaverton school district uses its scale of operations to be more competitive when purchasing. Cost control is integrated into the overall management scheme. Procedures to operate support programs with greater cost effectiveness have been developed in food, transportation, and custodial services. Self-insuring risk management and insurance, energy management, and intergovernmental cooperation are other measures that have increased cost effectiveness in the district. References and persons interviewed are listed at the conclusion of the bulletin. The appendix contains guidelines and questions for budget request reviews issued by the Beaverton school district to its budget committee members. (MLF)