Researcher to House Education: focus on school size, not just district lines, to curb per-pupil costs

Bruce Baker, an academic researcher who has studied Vermont school finance, told the House Education committee on Feb. 6 that “it's more about school size than district size” when it comes to per-pupil instructional costs. Baker said districts’ per-pupil spending levels off around about 2,000 pupils, while instructional and staffing costs rise for very small schools, producing the largest cost spikes.

Baker testified that drawing new governance lines around existing schools can cut only modest administrative costs but does not change school-level staffing ratios that drive the largest expenditures. “If you really wanna have cost savings, creating more optimal school sizes … that would maybe have some upfront costs on the capital side,” he said, urging the committee to identify priority consolidation projects that could deliver longer-term operating savings and broader curricular offerings.

Members pushed on feasibility and trade-offs. Representative Long asked whether consolidation of middle and high schools would yield the most fiscal benefit; Baker replied that consolidation where geographically feasible can free funds to support schools that must remain small for transportation or geographic reasons, and that state aid should compensate schools that are "small by necessity." Representative Brady raised capital needs; Baker said deferred maintenance and lack of state capital aid push annual operating costs higher and that building regional high schools requires substantial upfront investment but can lower long-run staffing and maintenance costs.

Committee members also highlighted social and economic concerns. Several lawmakers warned that school closures can cost community jobs — teachers, paraeducators, bus drivers, maintenance staff — and disrupt town hubs; Baker acknowledged those harms and suggested phased approaches, targeted buyouts and using savings from feasible consolidations to subsidize genuinely remote schools. He recalled prior work with the University of Vermont and American Institutes for Research and the committee discussed Act 46 as background for past consolidation efforts.

Next steps: the chair said the committee will spend significant time next week on the map and policy options, gather additional data from Baker and agency staff, and resume testimony at 1:00 p.m.

Sources: Testimony and discussion at the Feb. 6 House Education meeting. No formal motions or votes were recorded in the transcript.