This article examines one of the essential functions of an urban school district: ensuring that schools have the power and resources to make good decisions. The article focuses on equitable student-based budgeting, a strategy for resource allocation. It explores the benefits and challenges of moving to student-based budgeting. The article begins with a discussion of the need to re-examine resource allocation. It then presents case studies from three urban school districts: Cincinnati, Houston, and Milwaukee. These brief overviews discuss how these districts initiated the change to student-based budgeting and what results they have seen. The next section of the article addresses equity through student-based budgeting, stressing that the complexity of school funding hides many inequities. In urban districts, the article states, the many programs, diverse student populations, and multiple funding streams make sorting out spending especially difficult. The next section discusses the political, financial, and logistical challenges to implementing this strategy. The final section provides tips for implementing student-based budgeting that were drawn from the experiences of the three districts. Recommendations include the following: learn from other districts' experiences; link the funding changes to broader system goals; inform and involve key constituents from the start; and monitor implementation and results. (WFA)