This booklet investigates the fiscal impacts of declining enrollments from the point of view of state-level policy makers. Five aspects of declining enrollments are examined: (1) the magnitude of the problem both statewide and on a school district basis; (2) the type of school district affected by declining enrollments--central city, suburban, rural, large or small with respect to number of students; (3) wealth, tax rate, and state aid characteristics of declining enrollment districts; (4) the impact of declining enrollment on school district expenditures; and (5) the relationship between declining enrollments and the minority composition of school districts. A similar study was conducted in Iowa in 1976, and references to the Iowa results are made throughout. In conclusion, the implications of this study for new state policies are discussed. Detailed data on enrollment decline issues for the states studies are found in the appendixes. (MM)