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Service Consolidation

Service consolidation describes the transfer of responsibility for one or more services (e.g., business services, technology administration, human resources) from a local education agency (LEA) to another public sector organization (e.g., other LEAs, educational service agencies, municipalities). As K-12 school districts face uncertain revenue streams, policymakers (e.g., legislators, school board members) consider alternative service delivery models such as service consolidation, with the goal of reduced spending by capitalizing on economies of scale.

This entry describes service consolidation from its earliest educational application (i.e., a one-room schoolhouse) to examples from today’s complex school organizations. In addition to reviewing practical applications, the entry goes on to draw on production theory and provides examples where economies of scale do and do not exist. It ends with examples of ...

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