Strategies are offered to assist school districts with declining enrollments in dealing with surplus space and restricted funds. Teachers can be hired on the basis of midyear projections; also some teachers can be employed on a one-semester basis. Considerable savings can be obtained by renting out surplus classrooms and office space to other governmental agencies and to private firms. Districts are advised to utilize each school as fully as possible and dispose of all empty buildings. Early retirement programs assist older teachers to have economic security, save the schools money, and release jobs for younger teachers. Savings can be effected by decentralizing budget accounts. The accounts establish limits for services and products, making the local school unit accountable. (Author/MLF)