A principal from a district experiencing a sharp enrollment decline discusses some of the implications of the decision to close one of three high schools. The board policy developed to meet the challenge includes consideration of maintaining the quality of the educational program, the retention of tenured faculty, and the disposition of property. The issues facing the principal include a stabilized faculty that allows for no new blood, the problems inherent in the withdrawal of faculty from coaching and sponsoring extracurricular activities, apprehension in the faculty over their jobs, the difficulties in transferring teachers, and the need to make the programs in the merging schools compatible. (IRT)