This paper examines the current state of parental involvement in site-based management (SBM) councils. It defines SBM as a formal alteration of the governance structure and as a form of decentralization that identifies the school as the primary unit of improvement. To assess SBM councils, surveys were mailed to 600 principals representing urban, suburban, and rural public schools. The surveys focused on governance structures and specifically addressed principals' perceptions of the degree of power given to parents. Results taken from 191 usable surveys indicate that 60.7 percent of principals reported parental representation on SBM councils. Of the 116 principals who reported parental involvement, 38 worked in urban settings, 30 in suburban settings, and 48 in rural settings. The number of parents on SBM councils varied: 22 percent of principals indicated that parents made up the majority of SBM members, whereas 78 percent of principals reported that parents were in the minority or were in equal numbers to school personnel. Findings show that SBM councils are able to involve parents in decisions regarding instruction and budgets. However, 87 percent of the principals indicated that parental influence is limited either by the principal having the final say or by the SBM council having a majority of certified staff members. (Contains 45 references.) (RJM)