Over the past fifty years, school districts have consolidated in an effort to achieve economies of scale. While the determinants and effects of district mergers on operations have been studied (Gordon and Knight 2006; Duncombe and Yinger 2007; Jones et al 2008), the impact on communities has not. In small towns, schools not only educate, but also…

The effects of the Great Recession of 2007-2009 continue to challenge school business officials (SBOs) and other education leaders as they strive to prepare students for the global workforce. Economists have borrowed a word from chemistry to describe this state of affairs: hysteresis--the lingering effects of the past on the present. Today's SBOs…

This paper examines the hypothetical cost-savings that might ensue from a merger of most of Australia's major research universities. The results of the textual analysis show that a merger of these universities has the potential to reduce expenses and professional and support staff salaries, increase comprehensive income returns and improve…

This study analyzed the plausibility of merging school districts in New York State. The study considered how consolidation impacts finance, instruction, demographics, and enrollment for 56 public schools in Nassau County of the Long Island region of New York State. It also draws comparisons for county-, township-, and regionally-based school…

In Rhode Island, unless costs for education are controlled, taxpayers could face increased property taxes, increased sales tax on goods and services, and tax increases to existing fees to raise revenue (NEEP, 2010). Reducing the number of school districts was cited as the number two solution by the New England Economic Partnership in 2010 to…

This article examines the potential for reducing costs through school district consolidation by employing economies of scale. Utilizing Indiana school district data primarily from 2004 through 2006, we find evidence for scale economies with optimal enrollment being 1,942 students, with a per pupil estimated cost at $9,414. The 95% confidence…

As Duncomb and Yinger (2001) have stated, "School consolidation represents the most dramatic change in education governance and management in the United States in the twentieth century. Over 100,000 school districts have been eliminated through consolidation since 1938, a drop of almost 90 percent (NCES 1999, Table 90). This longstanding…

High-poverty schools in rural areas and small towns are under attack from state policy makers who want to consolidate these schools in order to save money. In addition to calls for consolidation, rural schools also are threatened by unfair and inadequate funding formulas.

This policy brief reviews the arguments for and against school district consolidation and the research regarding consolidation effects, with data specific to school districts in Illinois. A tiered approach to studying consolidation potential is presented as a viable option for policymakers to consider. The following topics are presented: (1)…

Between 1970 and 1990 enrolment in Newfoundland and Labrador schools dropped by 22 percent. The first wave of major educational reform (1990 to 2000) saw massive reductions in public school expenditures and the reduction of more than 1650 teachers. Facing continued enrolment loss and a large current account deficit, in 2004, government again…

The purpose of this study was to identify the common consequences experienced by school corporations when closing or consolidating schools. The primary focus of the study was to identify the financial and political consequences experienced by school corporations when closing a school closing or consolidating schools. Specific questions regarding…

School district consolidation is a striking phenomenon. According to the National Center for Education Statistics, 117,108 school districts provided elementary and secondary education in 1939-1940. By 2006-2007, the number of districts had dropped to 13,862, a decline of 88 percent. The rate of consolidation has slowed in recent years, but at…

In light of a slow economic recovery from the Great Recession, state and local governments are faced with the challenge of providing services to citizens amidst ongoing budgetary woes. For instance, although the most recent Indiana revenue collections for the month of August were above revised projections to help start fiscal year 2011 (which…

Consolidated Regional High Schools (RHSs) have replaced traditional Community High Schools (CHSs) in many nonmetropolitan communities. Consolidation purports to offer cost savings that, in theory, enable nonmetropolitan districts to provide a wider array of instructional opportunities to their students. Nonetheless, critics argue that the benefits…

As school districts face declining enrollment and stable or reduced funding they look for ways to contain costs and continue to provide a quality educational experience. In many states "a new wave of consolidation...may be at hand" (Kysilko, 2003). The research cites advantage for both consolidation and for maintaining small schools. The…