Alternatives in coping with the problems related to declining enrollment in rural school districts were explored in a study undertaken in 1976 by a special committee appointed by the Iowa Association of School Boards. Over a two year period the 18 member committee examined enrollment, finance, curriculum, facilities, faculty, mergers, and other appropriate matters. In four two-day meetings the group heard from a wide variety of witnesses, including state legislators, school administrators, university experts, school board members, and state officials. A number of strengths as well as hazards were identified. Small districts (below 800 enrollment) offered certain advantages, including more opportunity to participate in a variety of activities, more chance to develop leadership skills, stronger community involvement, a higher level of teacher satisfaction, test scores equal or better to students in larger districts, and more stability in graduates in terms of further education and employment. Merging of small districts may provide a "grace period" from the problems of declining enrollment but will not eliminate them. Problems will intensify for small districts and long range planning should be undertaken for every small district. The present headcount system of funding should be modified to compensate fixed costs which persist even as enrollment declines. This document summarizes the proceedings at each of the meetings, lists resource material and contents, and gives the conclusions and recommendations formulated by the committee. (DS)