I pulled my rear drums off today and the inside diamet measurement was 9.600 and the drum reads 9.59 max diameter.
Could I turn another .005 off it and still be safe?

The answer is simple NO ,there is a reason for the max diameter,cutting them past the max weakens the drum and builds heat faster the thinner it gets and I have seen drums break under the right circumstances when they were still within tolerances and I don't recommend it.
Remember the life you save maybe be your own!

Well i priced everything out and to replace everyhing but the backing plate and lines it comes to around 120$, for another hundred I could put rear discs on but still have the drums on the front.
Would this be hazardous to do it this way, my gut instinct say yes. Any other opinions on this?

I wouldn't do it, I have never heard of anyone putting disc brakes on the rear and leaving drums on the front. Appox 70% of your stopping power is done by your front brakes. Putting disc brakes on the rear only, would IMO cause an unsafe condition in a panic stop, especially on wet road conditions. I can't see where it would be that expensive to buy new drums, brake shoes and even wheel cylinders and rebuild the back brakes. Switching to disc brakes on the front would on the other hand be a much better upgrade...maybe you should convert the front and back to disc if it's financially within your means...or just stay with the drums on the rear for now.

Yeah thats what I thought too. I guess I just need to make sure lol

Well I replaced everything except the backing plate, which was surprisingly in really great shape. Plus while I had it all apart, I repainted everything.

Great Stop by and see us !!! nice to be able to do the work yourself now you can save for the disk brake set up ....:beer:

Front disc brakes is next on the list. Trying to get everything around so I can do the whole front end all at once since it will be all torn down anyway. No sense it doing ti twice.

Front disc brakes is next on the list. Trying to get everything around so I can do the whole front end all at once since it will be all torn down anyway. No sense it doing ti twice.
Much better than what I did. Last year I did the front-end, this year I did the Disc brake swap. Duh, work smarter not harder:let_it_all_out: