Book excerpt: As Duncomb and Yinger (2001) have stated, "School consolidation represents the most dramatic change in education governance and management in the United States in the twentieth century. Over 100,000 school districts have been eliminated through consolidation since 1938, a drop of almost 90 percent (NCES 1999, Table 90). This longstanding trend continues throughout the country, largely because consolidation is widely regarded as a way for school districts to cut costs" (p. 1). The study described in the present paper applies Duncomb and Yinger's methods to Michigan data, looking as possible to financial consequences of consolidation of school districts at the county level. Research data sets for 10 counties in Michigan are used to estimate cost-saving effects of consolidation, as in the Duncombe and Yinger study. It appears that significant savings can be achieved in consolidating school districts at the county level. The coordination of services also produces cost savings for the districts assuming participation in a county level (ISD) coordination of services. These findings are consistent with other research studies in New York and Indiana. However, consolidation studies conducted in Arizona and New Jersey indicated that the fiscal savings hoped for did not materialize to the extent expected. Overall, consolidation seems to make fiscal sense, particularly in rural and small districts. The coordination of services seems more palatable to Michigan communities and also produces significant reduction in cost of services such as transportation and operation. The results of this study should be of interest to state and local elected officials, to state education agency staff, and to public school administrators. The Future of School Districts Consolidation in Michigan is provided in an addendum. (Contains 1 footnote.) [This study was funded by the Booth Newspapers of Michigan.].