This paper was commissioned at the request of Kentucky's governor, who wished to ascertain whether state educational costs could be reduced by consolidating small school districts. The issue arises in the context of Kentucky's ongoing efforts to implement the Kentucky Education Reform Act of 1990 in the face of increasing state fiscal constraints.…

Kentucky has sustained the most long-lasting comprehensive education reforms in the nation. Passage of the reform was based on a growing awareness of the state's inadequate education system and won broad support from citizens, business and education interest groups. The systemic package of curriculum and governance reform are tied to funding…