We use a LOT of paper in schools. Why? We send notes home to parents about field trips, open houses, school rules...and each and every one of these can be presented just as easily through digital means. How? Blogs are super easy to create - with one web address you can give parents access to all the information they need about what's going on in the classroom and you also have a tool to build writing skills and digital citizenship with your students. Just one simple change such as this could mean saving reams of paper every year. Kidblog is a really great tool to use - easy to set up, has teacher controls that help you to monitor what's being published and their support is excellent.
Worksheets? Forget it...too much paper! Investigate Daily Five, CAFE, and individual websites as tools for students to practice skills instead. None of these require paper - they just require the time to set up daily routines with students. Take advantage of the expertise of other teachers in your building - they've probably got a wealth of bookmarked educational websites that they'd love to share with you. Better yet...start taking that wealth of information and publish it digitally so everyone has access to it anytime they need it.
It doesn't take much to save a lot of paper and increase communication not only between home and school but within your building staff as well.