As the enduring economic recession forces state and local governments to cut education budgets, astute allocation of resources is becoming more important. The author analyses three basic categories of educational resources: money, human capital, and time before moving to a discussion of resources as a component of school reform. The author examines district-level resource allocation. Because of current strictures, district administrators are realigning district spending levels, supporting and motivating school reform, and redesigning district practices. In this article the author also investigates the impediments to that process. Finally, the author examines current models in resource allocation, including certain alarming trends. The paucity of evidence-based research before allocating resources is noted, as are the difficulties faced by personnel in schools in which minority students are in the majority.