Rural school districts must cope with problems of finance, energy, teacher recruitment, and curriculum. The Pawnee Heights School District (Kansas) has dealt with all of these. Concerning finance, Pawnee Heights has taken advantage of several federal programs including CETA, Title I, Career Education, and Title III; it has filed an application for Title II-B Funds. The district also invests its money in a capital outlay program. To cut energy costs, in 1980 Pawnee Heights spent 21% less on electricity than in 1979. The district participates in the Title III Energy Program; it has recently received a Technical Assistance Grant. The district tries to recruit young teachers with little or no experience, but whom they feel will be good teachers. To insure a good curriculum, there must be administrative leadership, Board of Education involvement, and staff participation. Pawnee Heights sets up yearly individual meetings with teachers to discuss additions, deletions, and recommendations to the curriculum. Pawnee Heights has also used cooperative education and vocational education programs. To meet the needs of rural students, small school districts should emphasize basic skills, encourage teachers to have broader subject background and certification, involve parents and community in education, be creative, and work cooperatively. (CM)