The example of the Cincinnati (Ohio) Public Schools demonstrates that involving taxpayers in school district budgeting can generate school improvement. This financially troubled district decided in 1979-80 to (1) fully inform the public of the schools' financial position; (2) involve the public in improving that position; (3) involve the public in budgeting; (4) establish long-term community participation; and (5) give each neighborhood power over spending in its school. A school district should initiate such a process by requesting the community's help at an informational meeting with as much attendance as possible. A subsequent community meeting should establish a permanent advisory committee; after training in the budget process, this committee should then set rules for community participation and report to the community the status of the project. Having completed this step, the Cincinnati district is establishing a budget committee for each school, comprised of school staff and students and community members. Each year these committees prepare the district budget based on the administration's draft; first, however, they must set educational goals--the real aim of community participation. Using this process, the Cincinnati schools have gained revenue and credibility and have realized improvements in achievement, enrollment, attendance, and retention of white students. (MCG)