This paper considers implications of the findings of the Texas Performance Review concerning mental retardation services, in light of decreasing numbers of students at state schools and budgetary restraints on major investments in both institutional operations and community service programs. The paper concludes that Texas should consider closing…

Most administrators approach program reduction as a budget issue; in reality, it is a governance and planning issue of major importance for the 1980s. Steps in a planning process for program discontinuance (including pitfalls) are described, based on a national study supported by the Exxon Foundation. (Author/LB)