This article makes the case that cost functions are the best available methodology for ensuring consistency between a state's educational accountability system and its education finance system. Because they are based on historical data and well-known statistical methods, cost functions are a particularly flexible and low-cost way to forecast what…

State aid programs for local schools have not kept pace with New York State's ambitious, revamped Regents examination program. This paper explains a method for developing a comprehensive education cost index and shows how to incorporate it into a performance-based foundation aid system. (Contains 36 references.) (MLH)

Considerable interest in consolidation or reorganization of school districts derives from the perception that consolidation produces significant cost savings due to scale economies in the provision of education. This paper examines potential cost savings from consolidation of New York school districts--an initiative actively encouraged by the…

Explores whether state policies encouraging the consolidation of rural school districts to improve efficiency through economies of scale are substantiated in the research literature. Reviews three decades of research on education economies of scale involving cost and production-function studies. Finds little program-evaluation research on school…