To determine if a state-supported program of educational cooperatives would be beneficial to New Mexico's small schools, a review of the literature from 1960 was conducted and questionnaires were sent to selected New Mexico educators, followed by interviews. Approaches to shared services used by Texas and New York were investigated through the literature. Twenty interviews were conducted; 15 were with superintendents of small New Mexico school districts and most of the rest were with state department of education personnel. Various kinds of shared activities between New Mexico's small schools have existed over time including special education, vocational education, Title IV-C, and purchasing. Many programs ceased because of the considerable distances involved. Respondents generally favored shared services cooperatives, but foresaw problems in supervising and administering both staffs and programs, and had reservations about the time spent and cost of travel between districts. Overall, small or isolated schools could improve their programs if New Mexico adopted a regional service center approach like that in Texas. New Mexico should fund or pay for all basic services needed by districts with less than 700 students. Consolidation should not be used, because it does not improve services; some restructuring might help, however. (BRR)