School site budgeting may be said to exist when the school board and central office administration provide principals, in consultation with staff and sometimes community representatives, with an opportunity to prepare a budget for the allocation of resources at the school level. The objectives of school based budgeting include achieving more efficient use of resources; providing schools and instructional programs with needed flexibility; encouraging examination of the relationships among program objectives, program outcomes, and costs; and giving greater decision making responsibility to those most familiar with students' problems--principals, teachers, and parents. The implications, strengths, and potential problems of school site budgeting, as addressed in the literature, are summarized in this document. A briefly annotated bibliography of over forty relevant items concludes the report. (Author/PGD)