Back to Basics: Making Difficult Decisions Amid Declining Enrollment

 

As the U.S. population continues to decline, many districts will be faced with decisions about what to do about too many buildings and not enough students to fill them.

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Maria A. Parry, CPA, SFO

 Published April 2026

The past few decades have seen a decline in the United States' population, leading school districts to decide whether to close buildings. This once-rare aspect of school business officials' job descriptions has become more prominent over the past five years.

Here are some elements of downsizing that SBOs should consider if the topic has moved onto their checklist of responsibilities.

Do a Feasibility Study 

For a district with multiple schools, a feasibility (demographic) study may guide the district in determining the best way to re-district if a decision is made to retain a building for future reutilization.  

For a district with a single school building, the feasibility study may include examining surrounding districts that could provide space to house students if the building is closed.  

The study can also include the condition of each building in the district and the estimated cost of projects needed to maintain functionality or fulfill wish-list items.  

Rather than closing or selling a building, consider repurposing it. For example, the building might work as a dedicated school for special education students or an academy school. Or, in partnership with a local college, the building could become an extension school.

If the district is still in the planning stages, cost-saving measures such as cooperative purchasing, utility savings programs, and changes in non-academic areas may provide additional time to render a decision.

Review Finances 

If revenues are fixed either through state aid or caps on local taxes, determine if any funding opportunities are available or if there are any expenditure savings for upcoming budgets. If the district has not raised tax levies to the full cap, a data sheet showing the difference between what the revenues could be and what they are may provide additional talking points on financial feasibility.  

Revenue opportunities might include income from the following:  

  • Facility rentals. 

  • Tuition (regular and special education). 

  • Transportation jointures. 

  • Shared services. 

Reducing expenses can be a challenge. Analyzing expenditures over multiple years and determining what future budgeting may be required can guide the decision-making about closing a building.  

If the district is still in the planning stages, cost-saving measures such as cooperative purchasing, utility savings programs, and changes in non-academic areas may provide additional time to render a decision.  

The decision may be to keep the building open and plan accordingly. On the other hand, programs and personnel may be reduced to balance the budget, increasing unemployment costs and possibly decreasing morale. 

Plan and Communicate 

Keeping board members, county/state officials, and local union leaders aware of what is being considered avoids stakeholders feeling blindsided when resolutions appear on agendas. It may not be the easiest conversation to have, but it can be the best way to gather information and secure support before the final decision.  

This process is something that should be considered at least one year, but optimally two years in advance. Here is a checklist of topics for discussion during planning:  

  • Impact on students (loss of neighborhood school, longer bus ride). 

  • Impact on the community (loss of "hometown" feel of neighborhood school). 

  • Impact on staff (tenure, seniority, commute). 

  • Changes in school board makeup. 

  • Tax impact on the district and taxpayers. 

  • If selling or renting out a building, the cost of professionals to process the transactions. 

  • If liquidating assets, the cost of a professional to coordinate/complete the liquidation. 

  • Records retention. 

 

Additional Considerations 

Deciding to close/keep/sell a building is a time-consuming project. Being prepared and knowing ahead of time what will be expected of you as an SBO will empower you to determine if this project is something that you want to spearhead or whether you need to involve other professional(s) to manage the project.  

Final Thought 

While the project may be a financial decision, closing a school or consolidating a district can become an emotional process. Community responses might be overwhelming. Communication, input, and data should guide the district toward the best decision for students.  

 

Special thank you to Nicholas Brown, school business administrator for the Atlantic County Institute of Technology Vocational District in New Jersey, for contributing to this article.

  

   

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