Most public schools, out of financial necessity, have had to reduce costs while maintaining facilities and essential programs and remaining accountable for student outcomes. School downsizing can mean making painful decisions about program elimination and staff layoffs. This digest offers suggestions for using downsizing to some advantage--identifying and reducing programs of limited benefit, making instructional programs more focused and defensible, gathering detailed information about district staff's efforts, and utilizing staff ideas for cutting costs. The digest highlights examples of program ranking systems, such as the four-tier model, that help administrators decide which programs to cut. The digest also identifies what information is most valuable in planning reductions, and identifies who should be involved in the decision-making process. The digest also highlights ways to prevent low staff morale and discusses the effect of downsizing on staff creativity. (Contains six references.) (LMI)