This second interim report on declining enrollment in Ontario identifies the major implications of the several factors associated with declining enrollments and makes recommendations for immediate action to contribute to the stability of the system while preparing and initiating long-term policies. The first part of the report deals with demography and public finance with discussions intended to concentrate attention on the relationships between policies for taxation, grants and spending, and the many possible ways to respond to the problems. The second part of the report deals with seven aspects of the business of running the schools: structure, finance, programs, administration, teacher education, personnel, and facilities. Recommendations made on these subjects have as their main intent the encouragement of more discussion and better articulation of some specific emerging problems, and more immediate reaction on the part of the provincial government and school boards to bring about some short-run amelioration of conditions. (Author/MLF)