Faced with declining enrollments and increased costs, Iowa's Corwith-Wesley and Lu Verne School Districts are seeking solution through utilizing provisions of the Iowa Code which allow for co-curricular sharing and dissolution of one school district with attachment to another. Beginning in 1980-81, the two small districts are sending grades 7-9 to the Lu Verne building and grades 10-12 to the Corwith building. There is total academic sharing, including band and chorus activities. The two boards of education meet jointly every other month. The only thing remaining to be put together is the co-curricular program. A comparison of staff costs between separate and shared programs shows a savings of $137,381. The document includes relevant Iowa regulations, community-examined alternative solutions, a table of September 1979 K-12 enrollments (Lu Verne, 180 students; Corwith-Wesley, 308), and comparisons of budget growth for sharing and pupil transportation costs. Results of a Corwith survey show public sentiment for various alternatives. Also included are the enabling resolution and contract for the boards of education. Course offerings at the combined high school are provided with their 1981-82 enrollments. A list of witnesses and documents and the principal's statement for the hearing on co-curricular sharing conclude the document. (BRR)