Cost Effectiveness

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Since the late 1950s, the trend has been to create larger schools. Borrowing from the strategies of big business, policy makers and educators have argued that by creating “economies of scale” schools could offer more courses, particularly in science and math, to more students at a lower cost.

However, while small schools may spend more money per student, the cost per graduate is lower than at large schools.

A good, small school is characterized by having around 400-600 students, autonomous space (either as new construction or the reconfiguration of an existing building), and designated teachers and principal. Such features mean that some costs increase because they are spread over fewer students. However, while small schools spend more money per student, the cost per graduate is lower than at large schools. Because small schools graduate significantly more students than large schools, less money is “lost” when students leave school. Large schools also require certain expenditures from which small schools are exempt. The personalized environment in which students and teachers know one another contributes to safer schools, eliminating the needs for security personnel, metal detectors, and additional counseling and maintenance staff.

The cost effectiveness of small schools can also be measured in social terms. Students drop out of large schools at higher rates than small schools. Dropping out of high school significantly influences a person’s health, chance of being on welfare or incarcerated, and chance of getting a job. It is sobering that 82% of inmates in the adult criminal justice system are high school dropouts. According to a report from the Carnegie Foundation, a single year’s class of dropouts, over their lifetimes, results in about $260 billion in lost earnings and foregone taxes.

Transportation costs can be also lower at small schools. For some smallschools students are more likely walk to school or reach it with a short bus ride. The advantages extend beyond dollars saved in transportation. When schools are more easily accessible to students, students are more likely to participate in school activities and sports. Parents are also more likely to attend meetings and events, strengthening the web of relationships and commitment to school life that help boost student achievement.


This text is based on Oregon Small School Initiative fieldwork and a synthesis of ideas from the following source(s):

Klonsky, Michael (1998). Small Schools: The Numbers Tell a Story. The University of Illinois at Chicago, Small Schools Workshop: Click Here

Knowledge Works Foundation. (2002) Dollars and Sense: The Cost Effectiveness of Small Schools. Cincinnati, OH: Knowledge Works Foundation. Available: Click Here

Nathan, Joe & Karen Febey (2001) Smaller, Safer, Saner Successful Schools. Minneapolis, MN: Center for School Change, National Clearinghouse for Educational Facilities, and Humphrey Institute. Available: Click Here

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Readings
Dollars and Sense: The Cost Effectiveness of Small Schools

Smaller, Safer, Saner Successful Schools

Dollars and Sense: The Cost Effectiveness of Small Schools