The Local Education Development Fund was established by the Kaohsiung City Government according to the Compilation and Administration of Education Expenditures Act in 2003 and was operated as affiliated unit budget. Affiliated unit budget, which has the autonomy of distribution and flexibility of the execution, tallying with school-based management which are influenced by the educational reform trend, therefore was generally approved by educational administrators. However, according to the research¡¦s analysis, there was no significance on the encouragement of raising funds and there was difference between deposition of the accumulated surplus into the normal cost and the general financial concept. What kind of system on earth is the implementation of Kaohsiung Local Education Development Fund at the school managers, the principals¡¦ points of view? Furthermore, are their opinions changing with time? Has the affiliated unit budget exerted any influence on school management¡HHow can the merits of the affiliated unit budget be used to coping with the shortening of educational budgets after the combining of Kaohsiung City and Kaohsiung County and to exalt the spirit of school-based management and to promote civils¡¦ education. These are issues worth those people¡¦s discussion who care about civils¡¦ education and these are also the concerns of the research. The research adopted nature research and grounded theory to interview seven principals in primary schools and junior high schools in Kaohsiung City. The research explored interviewees¡¦ cognitions and opinions on Local Education Development Fund and their strategies and measures based on their experiences, and inquired the influence of Local Education Development Fund (which is based on affiliated unit budget), on school managements by means of Atlas.ti techniques. According to the research¡¦ analysis, though Kaohsiung Local Education Development Fund possesses the meaning of school-based budgeting. The practice can help the municipal avoid invest excessive capital in schools which has surplus of budget with the aid of controlling the cumulation on surplus budgets. Furthermore, in the interaction of administrative departments, there are strategic changes in financial execution which are less related to the types of budgeting, but more related to School Budget Evaluation implemented by the Educational Bureau. Besides, the budgeting has little effect on encouragements to increasing income and decreasing expenditure but enlarges gaps among schools and causes disadvantages to remote small schools. To sum up, the distribution of educational budget is more important than budgeting.