Description: In this report, we investigate the competing claims made in support and opposition of combining smaller school districts into larger districts. We find some small districts’ spending patterns and student performance differ slightly from larger districts, but very small districts have notable and troubling differences. We also find that substantial funding advantages and certain disincentives keep small districts from opting for consolidation. Our analysis suggests the state should not pursue a one-size-fits all approach for district configuration or require all small school districts to consolidate, but it does suggest the state should remove existing disincentives. To increase efficiencies and accountability, we also recommend the state increase the minimum size for districts to at least 100 students.