As student enrollments drop, effective principals should develop equitable staff reduction plans. The present plan calls for principals to determine staff support levels as well as staff ratios in three categories: classroom teachers, support teachers, and clerical/custodial services. Knowing past enrollments is essential for projecting the number of students expected within a 5-year period. During the first, adjustment, year no staff should be cut. During the second year, principals should project student populations for the year and determine staff needs. District administrators should be supervised to guarantee the fairness of the system's implementation. To require students to take additional courses with the same number of staff members, for example, will jeopardize the plan. The plan should also be refined over three consecutive years to verify enrollment projections and appropriateness of classes and to fine tune the reduction process. Six forms especially designed to assist principals in gathering staff utilization and enrollment data are appended. (KS)