This paper focuses on the organizational consequences of retrenchment policies emphasizing efficiency (selective cuts to insure long-term survival) and equity (across the board actions). The effectiveness of each of these policies was tested on 59 cases of school district enrollment decline over a 10-year period by means of a questionnaire/checklist and followup interview. Dependent variables considered were per pupil expenditures, teacher-administrator equity (change in ratio of teachers to administrators over time), and pupil-teacher ratio. Independent variables included two substantive retrenchment policies--reduction in force (RIF) rate and consolidation rate (speed with which districts closed schools)--and two process retrenchment policies--superintendent selection and use of a consultant. Environmental variables were limited to community type and decline rate. Regression analysis of hypotheses constructed using all variables tends to support the efficiency model of educational policymakers. Results further indicate that the use of consultants in urban situations has a significant effect on teacher-administrator equity and that outside successors are consistently more effective than superintendents drawn from within the organization. The fact that RIF and school consolidation emerged as of little organizational consequence suggests that educational policymakers in times of crisis deal with issues as they come up, like firefighters. (JBM)