entral administrative overhead costs for public schools are relatively small – as a share of public education expenditures. The real long term savings comes not so much from reducing centralized administration (numbers of district units) but from reorganizing individual schools into more optimal operating sizes – where feasible (elementary schools of 300 to 500 students and high schools of 600 to 900 students). But, achieving this optimal long run arrangement often means significant increases in short run capital costs. As such, a well designed consolidation plan likely does not help with the short term budget crunch.
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