Before you weld in the cage cut out the sunroof cassette. Gut the front bumpers and remove all of the radiator bracket, etc... and replace the entire front valence, headlights and so on with a used plastic camaro modified dirt track car front end. They are around $100. Basically cut everything off but the frame rails.
Remove the rear window, gut the doors and remove the door bars from inside. Remove the front glass, replace all the side rear glass with 3/32 poly from home depot.
Remove the wiper motor, AC pump/condenser/dryer, fuse box, ABS pump, all the wiring, ebrake lever, cables, rear shoes, PS resivoir, pump, tubing and put 2 small breathers where the high pressure lines went. Remove the heaterbox - it saves weight and it eliminates plumbing that can leak/explode. Remove the airbox and replace with cheap ricer screen.
Gut the dash - you need a $30 tach from Summit racing and some power switches... maybe a fuel and temp too... oh and run a wire back for brakelights :)
Cut the exhaust off right after the crossover before the cat, weld a right angle on there and point it at the ground.
If you don't have light wheels find the 14" BBS basket weaves that came with the cars in '90 - really light and you can still get tires.
Cut the top off the front shock towers and relocate it for camber and castor... weld it back and tie it into the cage.
Drop the rear as low as you can (cut the springs...) and stiff the hell out of it with junkyard swaybars... something big off the front of a ford/chevy pickup. You can cut holes and locate in the trunk - make long links to the control arm. (if you are on dirt... probably ignore this one)
If the rear subframe bushings are shot and you can't afford them in the budget - just weld it - that goes for the diff/carrier too. Make sure the guibo and center support bearing are in good shape.
Scour the junkyard for aftermarket shocks... you can cut and fit a lot of stuff in the rear but the fronts are tougher. Probably ebay/craigslist.
You should be pretty light now - around 2200 lbs with cage+driver which makes the brakes, steering, springs and everything else work good - make sure you have adequate cooling in the nose, fill it with 20-50 GTX, fill the gearbox & diff with Lucas 80-90, radiator with water + water wetter and go racin'