In this paper, we consider the problem of sensor resource management in decentralized tracking systems. Due to the availability of cheap sensors, it is possible to use a large number of sensors and a few fusion centers (FCs) to monitor a large surveillance region. Even though a large number of sensors are available, due to frequency, power and other physical limitations, only a few of them can be active at any one time. The problem is then to select sensor subsets that should be used by each FC at each sampling time in order to optimize the tracking performance subject to their operational constraints. In a recent paper, we proposed an algorithm to handle the above issues for joint detection and tracking, without using simplistic clustering techniques that are standard in the literature. However, in that paper, a hierarchical architecture with feedback at every sampling time was considered, and the sensor management was performed only at a central fusion center (CFC). However, in general, it is not possible to communicate with the CFC at every sampling time, and in many cases there may not even be a CFC. Sometimes, communication between CFC and local fusion centers might fail as well. Therefore performing sensor management only at the CFC is not viable in most networks. In this paper, we consider an architecture in which there is no CFC, each FC communicates only with the neighboring FCs, and communications are restricted. In this case, each FC has to decide which sensors are to be used by itself at each measurement time step. We propose an efficient algorithm to handle the above problem in real time. Simulation results illustrating the performance of the proposed algorithm are also presented.