The authors of this report argue that state boards of education must play an active part in assisting local districts with planning for enrollment decline. The authors review statistical data showing that enrollment decline in big city schools is generally worse than in other areas. State boards must be prepared to help districts that stand to lose state aid because of fewer students. But declining enrollment aid provisions should be directed only at those districts with the highest rates of decline. The authors also suggest that districts encourage retirement for school staff by lowering the retirement age and by eliminating penalties for early retirement. Inservice training should be provided to keep the staff informed. State boards should provide technical assistance to local districts to encourage more effective management of limited resources. A list of recommendations directed at state board of education members supplements this report. (Author/DS)