The impact of declining enrollment on the public schools and its implications for educational planning are examined. Three critical areas in instructional improvement are considered. As enrollments decline, more space becomes available in school facilities. Uses for this space are suggested: development of resource centers, expansion of enrichment and practical arts programs, more effective use of areas for handicapped students, and centers for staff inservice training programs. Smaller school populations also offer possibilities for more effective small group instruction. Curriculum adjustment to declining enrollment includes the expansion of individual instruction and the broadening of exploratory programs and increasing career awareness. The third area in which school improvement may be a direct outcome of declining enrollment is the more innovative use of staff talents and time. New groupings for instruction, the inclusion of teaming as an instructional practice, and differentiating staff responsibilities are discussed as possible means for improving instruction. (JD)