This case study of the effects of declining enrollment on the school district in one small Minnesota city is published in conjuction with a planning assistance manual. In its attempt to balance the budget, the district was forced to make many staff reductions, including cuts in administrative staff. In addition to the problems in force and building closing, the district faces growing resistance on behalf of those who wish to protect positions and maintain the status quo; it must also contend with a deteriorating high school building and increasing costs. Serious erosion of management capability has resulted from the retrenchment process. A transcription of a budget-cutting school board meeting indicates the pessimism pervading this district. The intent of the five case studies in this collection is to assist school officials and interested citizens in dealing with problems associated with enrollment decline. (Author)