Projected declines through the 1980s in Australian elementary and secondary school enrollment imply a number of changes in school finance and educational facilities and personnel, according to this report. Elementary enrollments will decline sharply until 1987 and then rise, while secondary enrollments will rise slowly until the mid-1980s before falling after 1986. This pattern will vary, however, across states and urban areas. The authors review the effects of declining enrollment on teacher employment and student-teacher ratios. They then discuss reductions in educational expenditures and their effects on school size, structure, and staffing and on teacher salaries and promotion. Two further chapters examine options for the use of school facilities during enrollment declines, including the "dezoning" of secondary schools, closures, amalgamations, cooperating schools, specialist schools, and multi-campus schools. Another chapter on educational personnel considers the problem of deteriorating promotion opportunities and suggest early retirement, service or study leaves, part-time employment, and other means of maintaining turnover. Twenty-one recommendations are presented for dealing with enrollment decline, covering educational organization, facilities, and personnel. Two appendices analyze the size of Australian schools and review three case studies of enrollment decline in Victoria's secondary schools. (Author/RW)