The origin and extent of program reduction and discontinuance at colleges and universities, the elements of program review, and a framework for developing long-range organizational planning are considered. Program discontinuance refers to the merger of related programs, the elimination of certain degrees or programs within departments, and the closing of entire departments. Attention is directed to discontinuance initiated by state higher education agencies, institutions, and individual schools and colleges. Most of the information for the analysis is based on case studies and research on large public institutions and state higher education agencies; a survey of 46 state agencies also revealed that a nucleus of 26 states are initiating or recommending terminations. Additionally, a literature review considers society at large and the psychology of decline and policy formation, especially policies of termination. The following steps of program review are examined: initiating program discontinuance; the review process itself, including the selection of models and evaluation criteria; the decision-making step; and implementation of the decision and assessment of impacts on students, faculty, academic programs, and institutional budgets and organizational behavior. It is proposed that the institution needs: policies, data, and personnel to design strategies for program discontinuance; review teams and a continuous review process; sunset provisions (i.e., a stipulation calling for periodic program evaluation); and provisions for incentives and rewards at various stages in the discontinuance process. A bibliography is appended. (SW)