The flight of middle class families from the cities to the suburbs has left many cities hard pressed to continue services at former levels. Falling enrollments and revenues have led to mergers of city and county school districts or closures of city districts followed by county takeover. This report documents educators' experience of city-county school consolidation, with special attention to educator morale. Administrators of five North Carolina and Tennessee school districts that had undergone consolidation completed a preliminary questionnaire. Teachers and administrators from five consolidated districts in North Carolina, Kentucky, and Tennessee took part in hour-long telephone interviews based on the questionnaire. Five key factors affected or reflected educator morale before or during consolidation: (1) the extent of planning and of educator involvement in the planning process; (2) communications about consolidation; (3) fears about job security, transfers, inequitable treatment, and loss of benefits and special programs; (4) the actual events that occurred during implementation; and (5) educator grievances and departures. The districts surveyed ran the gamut from minimal loss of educator morale to major trauma for educators. Recommendations for educators and community members facing consolidation include: (1) extensive planning that involves boards of education, educators, and community members from both districts; (2) extensive communications among all interested parties to counteract rumors and groundless fears; and (3) strong leadership from superintendents and community leaders. This report contains 15 references. Appendices include the survey instruments, and merger chronologies for Charlotte and Mecklenburg County (North Carolina), Nashville and Davidson County (Tennessee), Winston-Salem and Forsyth County (North Carolina), Louisville and Jefferson County (Kentucky), and Knoxville and Knox County (Tennessee). (SV)