This report represents the efforts of the Task Force on Declining Enrollment, created by the Michigan Department of Education, to provide information and recommendations for effective planning and policy formation for the state department of education, Michigan school administrators, and local school boards. The task force and its report were created in response to the severe enrollment decline suffered by many Michigan school districts since 1972. The report covers four areas: (1) school finance, including state aid options and techniques for saving district dollars, (2) staffing, including reduction in force and staff planning guidelines, (3) educational facilities, including school closing guidelines, and (4) enrollment projections, including statistical data and projection techniques. Appendixes cover state aid provisions for declining enrollment in other states, projections of instructional staff for special education, and pertinent court rulings on staff reductions. (Author/DS)