The U.S.'s educational system is at a crossroads. Preparing every student for college and careers in the information age requires that school districts invest more and differently in teaching effectiveness, time, individual attention, and information systems. But even before a decline in revenue, district leaders face automatic increases in salaries and benefits that require them to cut spending every year. Meanwhile, scarce dollars are tied up in rigid prescriptions for resource use that fit industrial ways of organizing schools that are difficult to change because of policies, contracts, and tradition. Budget pressures present a choice--do less with less or seize the moment to transform school systems with clarified goals, new policies, incentives, and legislation aimed at making the most of education resources for all children. This paper discusses the seven priorities for restructuring resources which include: (1) Job and compensation structure; (2) Class size and student grouping; (3) Time; (4) Special education and early intervention; (5) Buildings and Facilities; (6) Leadership development; and (7) Outside partnerships and technology.