This document for school-council members in Kentucky provides guidelines for school-based decision making (SBDM). In 1990, the Kentucky State legislature passed the Education Reform Act (KERA), which mandated SBDM in Kentucky schools and recommended the formation of school councils composed of the principal, three teachers, and two parents. The first section presents the rationale for school-based decision making in Kentucky and describes accountability measures for student success. The second section offers six chapters on how councils operate--entering SBDM, holding elections, conducting meetings, writing bylaws, organizing committees, and planning the council's work. Chapters 9 through 20, which comprise the third section, focus on council policies. They cover the basics of policy making; curriculum and instructional practices; schedules and assignments; discipline and classroom management; extracurricular programs; procedures for determining alignment with state standards, technology utilization, and program appraisal; and policies to enhance achievement and meet the KERA goals. The fourth section includes four chapters on council resource decisions--funding allocations, staff, textbooks and instructional materials, and student-support services. The final section offers two chapters on the council's relationship with the state and school district. A glossary and appendix that contains the text of SBDM law and recommendations for SBDM are included. (LMI)