This paper reviews the New York State Small City School District (SCSD) school budget voting policy debate. State policymakers are debating whether to change from representative to referendum school budget voting in the 57 SCSDs. After examining the arguments, recent research, and possible costs and benefits of referendum budget voting, three possible scenarios are discussed. Based on economic and historical considerations, the recommendations are made that SCSD residents be allowed to vote on school budgets, as long as contingency budget reform for all fiscally independent school districts occurs at the same time. Four suggestions are offered to streamline the referendum process, which will reduce costs: (1) include only nonmandated expenses on the ballot; (2) standardize referenda across districts; (3) prohibit multiple revotes; and (4) explicitly define "mandated program" (a responsibility of the Department of Education). (LMI)