A program budget is an alternative to the traditional line-item budget. Such a budget would interpret the expenditures of the school system in terms of the programs the school system provides rather than in terms of the resources it utilizes. This report outlines a structure for such a Program Budget System (PBS) in the Worcester, Massachusetts, Public Schools. The outline describes the program budget structure, identifies the individual programs, discusses development of the program coding system, and provides designs for budget reporting forms. (Page 34 may reproduce poorly.) (JF)