ECONOMIC ISSUES IN SCHOOL DISTRICT CONSOLIDATION IN NEBRASKA

This research article examines how per-pupil spending on public primary and secondary education in Nebraska varies by school district size, and whether expenditures are expected to rise or fall after districts consolidate. We find a U-shaped relationship between per-pupil spending and the number of students per school district in Nebraska. We also find a similar relationship between property tax base and the number of students per school district. However, our analysis of per-pupil spending before and after consolidation fails to find consistent evidence that consolidation lowered per-pupil spending, in either rural or non-rural districts. The gains from consolidation become even more uncertain after considering the impact of consolidation on parent and student time costs, school quality, and community vitality.