School Days: BCG Advises Urban Districts on Fiscally Fit Strategies

Many of the largest U.S. urban school districts have experienced substantial enrollment declines over the past decade and are struggling to reduce costs in proportion to the amount of lost revenue, according to a new report by The Boston Consulting Group.

Joe Kornik | March 02, 2013

School Days Many of the largest U.S. urban school districts have experienced substantial enrollment declines over the past decade and are struggling to reduce costs in proportion to the amount of lost revenue, according to a new report by The Boston Consulting Group.

The report, "Adapting to Enrollment Declines in Urban School Systems: Managing Costs While Improving Educational Quality," outlines fundamental challenges that drive districts to employ budget-balancing measures that are unsustainable or that may adversely impact students.

The challenges are unrecovered classroom costs, higher fixed school-level costs, sticky central-office costs, a more expensive student mix, and the lack of an advance-planning ethic, according to J. Puckett, a Senior Partner and coauthor of the report.

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