When enrollment declines, districts spend more on fixed costs and less on variable costs (per pupil): Per-pupil spending for a hypothetical district before and after 10% reduction in enrollment
Enrollment | Before enrollment decline | After enrollment decline |
---|---|---|
Total | $16,667 | $16,667 |
Fixed | $8,333 | $9,259 |
Variable | $8,333 | $7,407 |
Note: This is a stylistic example of a hypothetical district that spends $500 million each year on students in year 1. In this hypothetical example, the district loses 10% of their students in year 2 due to vouchers, and as a result, gets 10% less ($50 million) to spend in the district. Fixed and variable costs sum to total.