As school districts face declining enrollment and stable or reduced funding they look for ways to contain costs and continue to provide a quality educational experience. In many states "a new wave of consolidation...may be at hand" (Kysilko, 2003). The research cites advantage for both consolidation and for maintaining small schools. The challenge of consolidation is how to reap the system wide benefits--cost savings, improved levels of efficiency, and more specialized use of human resources--while retaining the advantages--improved academic achievement, personalization of the learning environment, and a sense of community--offered by smaller schools and/or districts. (Contains 5 online resources.)