This report describes what schools and educators across Kentucky are doing to implement school reform in school-based decision-making based on the Kentucky Education Reform Act of 1990 (KERA). The School-Based Decision Making (SBDM) component of KERA is a decentralized governance structure that vests great authority in SBDM councils operating at the individual school level. Sampling was accomplished by randomly selecting one high school, one middle or junior high school, and two elementary schools from each of the eight Regional Service Centers served by the Kentucky Department of Education; 31 out of 816 schools participated in the study. In each school, a minimum of three SBDM council members were interviewed including at least one teacher, one parent, and one administrator. Information was collected using the Innovation Component Configuration Map for School-Based Decision Making, by reviewing available documents at each school, and by conducting in-person interviews. Findings indicated that approximately two-thirds of the schools exhibit a moderate to high degree of SBDM implementation and one third a relatively low degree of implementation in relation to a predetermined optimum. Communication regarding SBDM issues and activities was found to be targeted to all stakeholders and accomplished in an ongoing and timely manner in 85 percent of the schools, although the principal in each school appeared to control the actual impact of the SBDM council. Overall, the SBDM concept was supported by council members, although a lack of parent and community involvement was cited as frustrating to the council members. Appendices include the innovation component map for school-based decision making; a map of geographic areas served by eight Kentucky Department of Education regional service centers; statistical representations of data gathered, form letters used, and protocols. (Contains 50 references.) (NAV)