Aggregate spending reductions fall exclusively on variable costs: Aggregate spending for a hypothetical district before and after 10% reduction in enrollment
| Enrollment | Before enrollment decline | After enrollment decline |
|---|---|---|
| Total | $500 | $450 |
| Fixed | $250 | $250 |
| Variable | $250 | $200 |
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.