An assessment of school facilities and services and a survey of staff, student, and community attitudes was undertaken at the request of the Encino School Board to aid in educational planning and improvement for its small rural school which is faced with the problems of declining population (from 400 to 150 in the past 20 years), declining enrollment (66 students in grades K-12), and rising costs. The following recommendations are based on a comprehensive assessment of facilities, services, and educational costs: (1) add a part-time principal or intern in educational administration to assist the superintendent-principal; (2) develop a variety of inservice teacher training programs; (3) use the PLATO system to increase the number of courses available and further individualize instruction; and (4) finance capital outlays to reduce the building area and modernize classrooms. Survey results indicate that faculty, students, and community members are concerned with the quality of local education but have positive attitudes about their school and want it to remain in operation. In addition to specific educational improvements, the community of Encino might consider plans to counteract the pervasive effects of declining population. The development of tourist related business is one of several possible ways to bring new residents as well as income to the area. Appendices include the survey questionnaires and bibliography. (JH)