You will find tons of info on making sketchbooks in Getty archives.
Enter make sketchbooks teacherartexchange in Google for starters.
Be sure to click on the see more results at bottom of the search results page.
If your school has one of those book binding machines, that is the way
to go. Get some parent volunteers to help make the books. If you don't
have one of those machines, invest in some three hole folders (on sale
now in many stores for 5 cents a piece). Buy some three hole paper and
assemble books (again - get some parent volunteers - or even older
students for this method). Of course, you can punch the holes
yourself... but it would sure save hours of time to buy the paper
already punched - the time saved is well worth the expense.
Cheapest of course would be to insert photocopy paper inside a folded
piece of construction paper and staple (put as many sheets in as you
can and still staple). Once that book is full - make a new one.