Declines in student population are a fact of life in most of the nation's school districts. With the declines come unprecedented challenges and opportunities; sensitive community relations problems involved with school closings; costs that continue to rise despite the decline in student numbers; the need for staff reductions; the need for comprehensive advance planning involving both staff members and the community; lower teacher-student ratios and more room available for educational alternatives. Based on a nationwide survey of school districts, the report includes guidelines for making accurate enrollment projections; involving the staff, students, and community in planning and finding solutions; using alternatives such as magnet schools and clusters to help defuse the often emotionally charged atmosphere; and developing and maintaining a good public information program. The report features five case studies of districts that have met and solved their first rounds with declining enrollment. (Author/IRT)