Nationwide School Closures Amid Declining Enrollment: A Closer Look at Financial Implications
As school districts across the United States grapple with declining student enrollment, many are opting to close or merge campuses in a bid to cut costs. However, new research suggests that the anticipated financial savings may not be as substantial as expected.
In Cleveland, for instance, the school district has already shut down or merged nearly a third of its schools as students returned for the academic year. This decision, aimed at alleviating financial pressures, is now under scrutiny. Conor Morris from Ideastream Public Media provides insight into this issue.
(SOUNDBITE OF MUSIC)
At the Mound School of the Arts in Cleveland’s Slavic Village, the atmosphere is abuzz with excitement and apprehension as the new school year begins. Amidst DJ beats, colorful balloons, and a welcoming cookout, arts teacher Kristin Plambeck reflects on her transition to a new school after two decades.
KRISTIN PLAMBECK: “Part of me feels like a first-year teacher (laughter), and another part of me feels like I’ve been doing this so long, I know what I’m doing.”
The Cleveland school district consolidated Plambeck’s former K-8 school, Dike School of the Arts, with Mound Elementary, creating the Mound School of the Arts. In total, 29 schools were closed or merged this fall within the district’s nearly 90 schools. Plambeck remains optimistic, praising the new art room facilities.
Despite a significant drop in enrollment—from 74,000 in 2000 to just 34,000 projected by 2025—school leaders anticipate saving $30 million annually. They argue this will enable a more focused allocation of resources to the remaining schools. Yet, recent research challenges the effectiveness of such measures.
Francis Pearman, an assistant professor of education at Stanford University, led a study that scrutinized nearly a decade of school closures in California. He questions the logic of closing schools as a primary cost-saving strategy.
FRANCIS PEARMAN: “You know, in industry, we know that the last thing a firm does is close the factory, right? But it seems like in school systems, the first thing you want to do is close the factory, right?”
Pearman highlights that the bulk of school expenses reside in staff salaries and benefits rather than infrastructure. Moreover, the closures may inadvertently reduce funding linked to student enrollment, as students might migrate to nearby private or charter schools.
Georgetown University professor Marguerite Roza describes this phenomenon as “the big shrink,” attributing it partly to schools’ reluctance to reduce staff and operational costs despite declining enrollments. With more than a dozen major districts from Houston to Philadelphia closing schools this year, Roza predicts further closures.
MARGUERITE ROZA: “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 – you know, that doesn’t hit the same families again and again and again.”
While national studies suggest academic performance may decline in the short and potentially long term following school closures, Cleveland’s first week back has encountered minor issues, such as incorrect bus drop-offs and overcrowded classrooms. Teacher Chris Legrair notes the challenge of merging students’ identities from different schools.
CHRIS LEGRAIR: “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.”
A district spokesperson remains optimistic about the consolidation plan’s rollout, but acknowledges that the complete impact of these changes will unfold over the coming years.







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