This document describes the industrial decline in a small Midwestern town and its effect on education and the local economy. While some people refused to see a problem, others saw that the decline would continue until the town school closed and community services dwindled. The paper calls for new solutions to rural education and economic problems, even though the problems themselves may not yet be readily apparent. He cites a rising drop-out rate, suggesting that education officials broaden their mandate and link schools more closely to economic development and the community. He suggests that schools use their resources to serve other social needs in the areas of food service for the elderly, recreation, transportation, communications, library services, job training, and career counseling. Formal classes, traditional textbook study, the school day and school calendar are criticized as archaic. The paper notes that developments in telecommunications can totally change the concept of schooling. Leaders in educational change are asked to consider community needs and resources. A section at the end offers a general view of possible education reforms. The paper includes one chart comparing spending patterns in-town with those outside the town. (TES)