Does School District Consolidation Cut Costs?

Web Abstract: 
Evaluates the cost impacts of consolidation in rural school districts in New York over the 1985 to 1997 period. Holding student performance constant, school district consolidation substantially lowered operating costs, particularly when small districts were combined. The operating cost savings ranges from 22 percent for two 300-pupil districts to 8 percent for two 1,500-pupil districts. In contrast, consolidation lowers capital costs only for relatively small districts, and capital costs increase substantially when two 1,500-pupil districts come together. Overall, consolidation is likely to lower the costs of two 300-pupil districts by over 20 percent, to lower the costs of two 900-pupil districts by 7 to 9 percent, and to have little, if any, impact on the costs of two 1,500-pupil districts. State aid to cover the adjustment costs of consolidation appears to be warranted, but only in relatively small districts. Includes 44 references
Author: 
Duncombe, William; Yinger, John
Publication Date: 
12/31/2000
Page Numbers: 
56
Resource List Category: 
References to Books and Other Media