A RATIONAL ECONOMIC-ANALYSIS OF PUBLIC-SCHOOL CLOSINGS IN SASKATOON

The Saskatoon public board closed eleven elementary schools and one high school during the period 1978-88. The finding from two economic models is that the school board did not act as a discriminating rational economic decisionmaker in closing two elementary schools located in a case-study neighbourhood. The postponement of the closures resulted in an annual subsidy to the remaining students and their families for an amount eventually equivalent to 40% of the actual savings. The school board thus incorporated noneconomic factors into its decisions in anticipation of the community reactions to a closure.