The phenomena of declining school enrollments, budget reductions, and subsequent school reorganizations and closings will continue to grow in severity for some time to come. A procedure needs to be developed for evaluating a school district's physical needs based on identified considerations for efficient operation. The development of such an approach could help reduce any effect of influences not directly related to efficiency. A review of the literature does not disclose the existence of such a procedure. A study of 12 school closings in New Jersey was conducted that utilized KEMEC, a weighted grid system, to establish for each district a school closing order based purely on efficiency factors. Nine of the 12 schools closed were found to be those selected by the KEMEC procedure. The three districts whose closings differed from those predicted were investigated further to determine what other considerations impinged on the ultimate decision. (Author/JG)