The three parts of this paper present a review of how the states provide state aid formula adjustments for enrollment decline, findings of a survey of New Mexico superintendents regarding revision of the state's formula, and the implications of formula revision for the goals of school finance reform. First, it is noted that there is a trend toward adoption of adjustments in school finance formulas to assist school districts in decline. Several different ways state formulas are adjusted are outlined, including "hold harmless" provisions, funding a percentage of decline, and averaging of prior years' student count. Next, a survey of 60 New Mexico superintendents is discussed, with the findings that 46 percent favored continued study of possible formula alterations, 28 percent felt that enrollment decline should definitely be addressed in the formula, and 13 percent indicated that the formula should not address decline. Respondents made 43 suggestions about what form adjustments might take. The author concludes with a discussion of why he feels formula adjustments may run counter to efforts to distribute revenues equitably. He recommends that only severely impacted districts should receive assistance, and then only on a short-term basis. (JM)