Document Type


Publication Date

Spring 2014


The New York State Division of the Budget provides Reorganization Incentive Operating Aid to reorganized school districts for fourteen years following their reorganization. This incentive entitles school districts to millions of dollars of additional school aid and is meant to help financially inefficient districts reorganize to create more efficient and effective units. This paper examines the effects of reorganization on school districts and whether reorganization actually produces more efficient and effective units.

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