Population decline poses significant challenges to small schools worldwide, including resource management, student retention, and community engagement. In South Korea, these challenges have been amplified by a shift from centralized education policies to regionally tailored approaches under provincial superintendents. This study analyzed the impact of budgetary and legal support, along with legitimacy pressures, on small school sustainability using data from 2013 to 2022 and negative binomial regression analysis. Findings revealed that regional education offices navigated conflicting demands of resource dependency and legitimacy, often adopting complex and inconsistent strategies. The results underscore the limitations of rightsizing policies in addressing small school challenges, emphasizing the need for community-centered and adaptive solutions. This study provides actionable insights for policymakers in South Korea and other nations facing demographic shifts, highlighting the importance of collaborative governance and strategic resource allocation to ensure the long-term viability of small schools.