The report addresses characteristics and concerns of New Mexico's 19 smallest school districts with a 1981-82 average daily membership ranging from 262 to 60 students. Information was gathered from a Public School Finance Division questionnaire sent to the 19 superintendents; from a December 1981 meeting with 10 of the smallest districts; from budget materials; and from 1981-82 State Department of Education records. Among the areas addressed in the summaries of the 18 returned questionnaires were unmet needs, staff development, priority concerns, program concerns, cooperative instructional services/programs, and legal constraints which prevent adequate programming. Problem areas and solutions discussed include: insufficient funding, inadequate housing, multiple certification/endorsement requirements, inter-agency or district communication, shared services, educational standards, and transportation funds. Budget materials are used to provide a comparison between 19 school districts and 4 larger school districts in relation to salaries, cost per pupil, pupil-teacher ratio, enrollment and teacher trends, and combined grades. State Department records provide information on the 19 school districts in terms of New Mexico Educational Standards, teacher certification, program waivers, program offerings (science, math, foreign language, art, vocational education, and physical education), and support services (libraries and counseling). (AH)