Do You Have Any Good Ideas For A Sweet 16 Birthday Party?

You could hire a photographer (maybe a friend who does photography on the side or one who is trying to build a business) to come to your home and have a girls-only "glamour shot" party where they could have fun getting glammed up and then they could have instant digital glamor shots they could keep forever/email to each other. I did this for my daughter when she was 13...and they all loved it!...I think it would still apply at 16.

I would ask your daughter what she would like to do.  Have her help you plan it, that way she will love it.  Make sure she knows you are on a budget and cant have everything she wants.  My kids are hispanic so when they turn 15 we rent a place, get a band or dj or music, and have a dance and party.  You can usually rent a place cheap.  And some music is you just bring it is free.  You can have cheap food, and drink.  It all depends on what you are thinking.  Maybe go to a park if it is not to cold or have a swimming party.  Teens like that kind of stuff to, or take them roller skating.  Just some suggestions, good luck.

I would try doing a theme based around the year she was born. Decorate with fun items from that year and have the kids show up in outfits fitting for that time period

I found a great site, Kids Craft Zone that list hundreds of fun kids crafts to do at parties. May check there for some fun stuff.