School Closures' Financial Savings Questioned by Research
New research examining California school closures suggests the expected financial savings from district consolidations may be smaller than anticipated, as
School districts nationwide are closing campuses as student enrollment declines. New research from Stanford University challenges whether these closures deliver the expected financial savings.
Cleveland Metropolitan School District closed or merged 29 schools this fall. District leaders estimate the consolidation will save $30 million annually for a system facing significant deficits. Enrollment in Cleveland has dropped by more than half, from about 74,000 students in 2000 to 34,000 in 2025.
Research Challenges Assumptions
Francis Pearman, an assistant professor of education at Stanford University, led research analyzing nearly a decade of school closures in California. The findings question core assumptions about cost savings. "In industry, we know that the last thing a firm does is close the factory," Pearman told NPR. "But it seems like in school systems, the first thing you want to do is close the factory."
Pearman explains that school costs are predominantly tied to staff salaries and benefits, not buildings. His research indicates many California schools lost funding tied to student enrollment after closures. This could happen for dozens of reasons, including nearby private and charter schools attracting students away once their local public school closes.
The National Trend of 'The Big Shrink'
Georgetown University professor Marguerite Roza describes the widespread phenomenon as "the big shrink." She attributes it partly to districts delaying cuts to staff and operations despite years of falling enrollment. More than a dozen large districts from Houston to Philadelphia are closing schools this year alone, with Roza predicting more closures are coming.
Roza says districts must plan for continued enrollment declines. "So districts might need to really think over the next 10 years, if our enrollment trends continue, what would be a plan that doesn't hit the same families again and again and again," she said.
National research suggests student academics suffer in the short term and potentially long term after a school closure.
Consolidation's Early Hiccups in Cleveland
The first week of classes in Cleveland's consolidated schools experienced some logistical challenges. Students were dropped off at incorrect bus stops, and some classes became overcrowded. Teacher Chris Legrair expressed concern about students from merged schools adjusting to a new shared identity at the combined Mound School of the Arts.
Legrair worries about cultural integration. "I think it's just the culture, like, so the little rifts between the Mound kids and the DSA kids, and them still holding on to, like, their old identities and us trying to get them to understand, like, now we're one," he said.
A district spokesperson stated Cleveland school leaders are currently satisfied with the consolidation plan's rollout. The full impact of these closures in Cleveland and other districts, however, will not be known for years.
