As states encounter economic strains on their school districts' budgets, the State of New York has come up with a workable solution. In 1983, the New York state legislature began offering school districts funding bonuses to encourage school consolidation. Rural school districts struggling with meeting state and federal educational mandates or that have declining budgets have benefited from the increased aid. The school districts that consolidate can receive a 30 percent budgetary increase in building aid and an additional 40 percent in the district's operating aid.
Rural school consolidation has several primary economic advantages that benefit the school district. When a district consolidates, negotiation for bulk purchases in school equipment and supplies results in lower costs. Larger rural consolidated schools mean that the students from smaller districts will now be able to take advantage of larger facilities. These facilities can offer improved science and computer labs and access to increased extracurricular activities. The district administration will be able to lower the cost of teacher, support staff and administrative salaries, because the per-pupil cost will be lower, according to a 2007 study by Yue Hu for the Wisconsin Center for Education Research.
The more rural school districts consider school consolidation, the greater the positive economic impact on the state budget. According to the Pennsylvania School Boards Association, the state of Pennsylvania would benefit from greater rural school consolidation, with over 501 school districts. Forty percent of Pennsylvania's school districts serve under 2,000 students. Standard and Poor's performed a cost-effectiveness study in 2007, using a hypothetical pairing of bordering school districts. The districts serve small student populations with higher than average per pupil costs. The consolidation of 34 optimal pairs netted a potential result of $81 million in savings to the state.
Greater student enrichment opportunities are important benefits rural school consolidation can offer students. The academic benefits for a student are much greater in a larger, rural consolidated school environment due to more diverse curriculum offerings. Access to libraries, guidance counselors and even nurses are valuable advantages for students. Teachers in larger districts are typically better paid and have greater access to more advanced educational materials and equipment. In addition, larger rural school districts give students access to more educational specialists, reports the Tennessee Advisory Commission on Intergovernmental Relations.