Educational policy makers continue to promote non-instructional service consolidation as one method to reduce operating costs through economies of scale. Unfortunately, there is essentially no empirical evidence on the size or source of cost savings associated with such measures. Using panel data from 2004-2010, this mixed methods study measures and finds few spending reductions associated with the consolidation of services from the local district to the Educational Service Agency (ESA). Although this is only one of several service consolidation models, (e.g., local districts sharing services with each other, local districts sharing services with municipalities, privatization of services), this study also finds no support for the prediction that consolidating non-instructional services other than the Business Office significantly increases instructional spending.Next, I analyzed a case study where local district administrators encountered few employee or community objections to service consolidation, unlike the political ramifications of school district consolidation initiatives. In addition, local district superintendents and ISD administrators described service quality improvements, especially in the areas of accountability, compliance with regulations, and establishing proper accounting procedures.
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