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My yearbook staff prided itself on winning awards, and we followed the format Raggedy Ann mentioned. In the longterm (and if it's high school) I would recommend sending some of the kids to yearbook camp. Yes, it's a bit like "this one time at band camp" but the kids learn A LOT in a week. And it wouldn't surprise me if they had a teacher's program as well. I googled yearbook camp and found camps and 2-3 day programs. Of course, you'd probably have to talk kids into going and paying for it themselves since you probably don't have the budget for that.
Our books were written through the entire year and published over the summer. You got last year's book in the fall. But it was a fairly large high school. I wouldn't bother with that if it's a middle school and just knock it out in paperback before school lets out.
And ads are I think important. We had regular ads (sold to quite a few businesses around town, not just parents' businesses) and then we had a couple pages of small ads the kids would buy for personal messages or whatever. This was a huge hit and always always sold out early. The process of sales and follow up was a good lesson for all of us (no matter what your department, EVERY kid on the staff had to sell ads) and was a fun project that got us out of school for a couple afternoons in the fall.
The sale of the ads determined how much color we could afford. I don't know the other details of our budgeting, however.
Good luck! Yearbook was a highlight of my high school career.
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