This report summarizes an evaluation of Shared Decision Making (SDM) in Los Angeles (California) schools and also includes some comments about School Based Management (SBM). SDM is a democratization of local school decision making that delegates decisions formerly made by principals to local school leadership councils composed of teachers, parents, and nonteaching school personnel. SBM is a decentralization of decision making that permits teachers, parents, and principals to change local school governance structures and educational strategies. Evaluation information was drawn primarily from interviews at 10 schools. The following findings are presented: (1) the first year of SDM did not generally result in major changes; (2) teacher and parent involvement in the budget process was hampered by the paucity of funds controlled by the local school leadership councils, but discipline was a major focus of attention; (3) the development of collegiality varied widely among councils, the role of the principal in both SDM and SBM was not clearly defined, and parents tended to focus on discussions of discipline but not participate in business matters; (4) some principals have been minimally involved in developing SBM proposals; and (5) some principals have felt pressured to approve SBM proposals. Recommendations emphasize clarifying the role of the principal in both SDM and SBM, training local school leadership council members in substantive areas, and involving the board of education in program oversight. (FMW)