by Chris Berdik, The Hechinger Report
January 5, 2026
PEACHAM, Vt. — Early on a chilly fall morning in this small Vermont town, Principal Lydia Cochrane watched a gaggle of kids chase one another and a soccer ball around their school recess yard. Between drop-off and first bell, they were free, loud and constantly moving.
With only about 60 students in prekindergarten through sixth grade, Peacham Elementary is the sort of school where all the kids know one another and locals regularly respond to calls for supplies and volunteers for field trips and other school activities. Cochrane gestured at the freshly raked wood chips around the swings and climbing structures, one of many tasks Peacham families completed at a recent community workday.
“With a small school, the families know how crucial it is to support it and ensure it succeeds, and so they show up for it,” said Cochrane.
Peacham is also a type of school that’s disappearing nationwide, as education systems grapple with plunging enrollments and rising costs. Amid declining birth rates and growing competition from private-school voucher programs, the number of students in U.S. public schools dropped about 2.5 percent between 2019 and 2023, according to the most recent federal data. Fewer students leads to higher per-pupil spending, because district staffing and other expenses largely remain in place despite enrollment drops, and states are increasingly trying to escape the education budget crunch via school consolidation: In the past three years alone, at least 10 states have considered measures to mandate or incentivize district mergers.
These pressures are especially keen in rural areas where the smallest schools predominate and play an outsized role in community life. Vermont, the nation’s most rural state, has lost about 20 percent of its K-12 public school student population in the past two decades. That’s helped push per-pupil costs and property taxes to the breaking point. Early in 2025, the state’s governor and education secretary released a plan to overhaul Vermont education, proposing massive district consolidation as the foundation for sweeping changes in school funding, curricula and academic standards.
The Legislature responded with its own comprehensive plan, which passed last summer as Act 73, calling for a minimum of 4,000 students per district, a threshold now met by only 1 of the state’s 119 districts.
District mergers are not the same as school closures, but one invariably leads to the other, as they have in Vermont’s other recent waves of district consolidations. The scope of Act 73’s proposals have ignited intense pushback from people fearing the loss of local control over education, even from a majority of the task force created to map options for bigger districts.
This month, the state Legislature will consider whether to push forward or completely rethink the process, a debate that will be closely watched by rural education advocates nationwide. Backers of school consolidation maintain that the crises of declining enrollment, falling test scores and tight education budgets demand a bold response and that consolidating schools is necessary to control costs and more equitably distribute resources and opportunities.
Opponents say the evidence that widespread school consolidation saves money — or helps students — is mixed at best, and that success depends highly on local context. They want any mergers and closings to be voluntary and done with a clear-eyed accounting of what’s to be gained and lost.
Related: A lot goes on in classrooms from kindergarten to high school. Keep up with our free weekly newsletter on K-12 education.
Vermont’s student-teacher ratio of 11 to 1 is the lowest in the nation, and the state now spends nearly $27,000 per student, second only to New York State. That has triggered spikes in local taxes: In 2024, Vermonters facing double-digit property tax increases subsequently rejected nearly one-third of school budgets when they next went to the polls.
The school budget revolts led Republican Gov. Phil Scott and his recently appointed education secretary, Zoie Saunders, to propose an education overhaul in January 2025 that would have divided the state into five regional districts serving at least 10,000 kids each. That plan was then superseded by Act 73, which created a redistricting task force of lawmakers and education leaders to map options for the Legislature to consider when it returns to work this month.
Saunders argues that school consolidation is key to the broader education transformation that Vermont needs in order to tackle several interconnected challenges, including rising student mental health issues, falling test scores and stubborn achievement gaps. “Many of these issues are hard to solve unless we address our issues around scale and funding,” she said in an interview. “We had to think about reform in a way that was going to focus on funding, quality and governance, because they’re all connected.”
The state has consolidated schools several times before. Most notably, in 2015, Act 46 triggered several years of mergers — first voluntary, then required — that eliminated dozens of districts and led many small schools to close.
Jessica Philippe, a Peacham parent who was on the school board at the time, recalled the worry that the district and its elementary school would be swallowed up. Many of Vermont’s smallest districts, including Peacham, operate only an elementary school and cover the higher grades by paying tuition for students to attend public or certain private schools outside the district.
“It seems like this is a cycle we have to go through,” she said. “Every five or 10 years, we have to fight to keep this place, because people from away think, oh, that’s just a few kids we have to disperse.”
The Peacham school board fended off that threat by showing the state board of education ample data that Peacham Elementary was viable and that there wasn’t much money to be saved from a merger. In fact, the state has never done a full financial analysis of Act 46. At the very least, the mergers failed to stem the spending and tax hikes that triggered Act 73.
The only comprehensive accounting of Act 46 was done by a Vermont native, Grace Miller, for her 2024 undergraduate thesis at Yale University where she studied economics and education. In her analysis of 109 districts between 2017 and 2020, she found that mergers did yield some savings, but it was soaked up by new spending such as higher salaries in newly combined districts and higher costs to bus students to and from schools farther away.
Meanwhile, some of the fastest-growing educational costs in Vermont are arguably outside school and district control, such as skyrocketing health care premiums, which account for about 15 percent of district spending. According to data from KFF (formerly the Kaiser Family Foundation), Vermonters pay the highest “benchmark” health care premiums of any state, nearly $1,300 a month, almost double what they paid just five years ago. The state has also shifted other financial burdens onto districts, such as capital construction costs for schools, which the state hasn’t funded in nearly two decades.
“We need to be focused on those core cost drivers,” said Rebecca Holcombe, a Vermont state representative and member of the redistricting task force, “not because there aren’t small schools that are inefficient and might not make it, but because even if we addressed them, we’d barely touch the real problem.”
Holcombe, who was the state’s education secretary when Act 46 passed, believes some school consolidation makes sense for Vermont, but not mandated mergers, especially at the scale proposed by Act 73. She was among the eight of 11 task force members who voted not to include maps of new, bigger district options in their final report in early December.
Instead they proposed a 10-year plan to create five regional “cooperative education service areas” where districts would pool resources to coordinate services — such as transportation, special education and professional development — and generate savings through scale. It also proposed that the state offer financial incentives to districts that voluntarily merge, centered on creating or strengthening high schools to serve students from combined districts and beyond.
Speaking to reporters, Gov. Scott admonished the task force a few days after its members voted to forward only the shared services plan to the state Legislature without mapping options for consolidating districts. “They didn’t redraw the lines,” he said. “They failed.”
When lawmakers reconvene on Jan. 6, it’s unclear how they’ll handle recommendations from a task force that arguably rebuked its founding legislation. They could ignore the task force and create their own maps of 4,000-student districts. They might amend Act 73 to fit the task force’s proposal.
Or they might start fresh.
Related: A school closure cliff is coming. Black and Hispanic students are likely to bear the brunt
Seated in her office at Doty Memorial School in Worcester, a small Vermont town north of Montpelier, Principal Gillian Fuqua choked up when explaining her change of heart — from opposing to supporting a plan to close the school she’s overseen since 2019. Doty has about 60 K-6 students this year, and Fuqua slides a paper across her desk showing projections based on town birth records that enrollment could drop to 40 by the fall of 2028.
“It’s absolutely heartbreaking to me,” she said. “But we have to think about what we want for our kids, and we’re not in a good place right now.”
Worcester is one of five towns merged into a single district by Act 46 in 2019. For two years in a row, the district has considered closing Doty, which would require voter approval. Last year, the plan was shelved without a vote after residents protested. But now a vote has been scheduled for February 10.
This past fall, when the district restarted consolidation discussions, Fuqua joined the “configuration committee” and dropped her previous opposition to closing the school. It already must combine two grades in classrooms to meet state minimums for class size. Fuqua worried that if classes shrink further, teachers might struggle to foster soft skills such as teamwork, collaborative problem solving and navigating a diversity of opinions. A larger school, she continued, could also support a full-time instrumental music teacher instead of the one-day-a-week instructor that Doty kids get, as well as a full-time librarian.
Indeed, there is ample evidence from Vermont and other states that merged schools can expose students to more and varied learning opportunities. A report released in 2024 by the Vermont Agency of Education, based on surveys and superintendent interviews from seven districts that merged early in the Act 46 era, highlighted merged districts saving, adding or restarting school offerings such as literacy intervention services, world languages and after-school extracurricular activities.
Nevertheless, education researchers stress that sending students to a bigger school with more resources doesn’t necessarily mean improved academic achievement or well-being. “These students are often experiencing an enormous transition, and there are a whole bunch of factors that can affect that,” said Mara Tieken, an education professor at Bates College who studies school consolidation.
School closings tend to be in more disadvantaged areas, for instance, and students there now take longer bus rides that cut into time for studying, sleep and after-school programs. Another variable is whether students from a closed school all transfer to the same new school, or are “starburst” out because no single school can accommodate them all. Tieken said it takes serious planning “to smooth that transition for new students, to create a culture that’s welcoming.”
Research on student outcomes following school mergers reflects this tangle of factors. Some studies indicate that consolidation improves test scores, especially when students move to higher-performing schools. Others find little academic impact or lower performance in the first years after merging, more missed school days and behavioral issues and longer-term disadvantages in college graduation, employment and earnings as young adults.
“The answer to virtually every question about school consolidation is: It depends,” said Jerry Johnson, director of the Rural Education Institute and professor of educational leadership at East Carolina University, who has researched school consolidation for decades.
Related: Merger madness? When schools close — forever
Whatever might be gained from a merger, many Doty parents (and students) remain opposed. In interviews, several said their tiny school provides something incredibly valuable and increasingly rare: human connection and community. In places like Worcester, a local school is one of the few spaces that regularly brings folks together and serves as a magnet for the young families that sustain small-town life.
Rosie Close, a fifth grader at Doty, described a tradition of students making and serving soup at the town’s free “community lunch” held every Wednesday at the town hall. “If they closed Doty,” she said, “that would kind of take away part of the town, too.”
While some Doty families had deep roots in the area, others moved to town more recently, including Caitlin Howansky, mother of a third grader. Howansky grew up in New York City, where she went to an elementary school with more than 30 kids per class.
“Nobody outside of that classroom necessarily knew my name or knew me as a whole person. I was just one of the crowd,” she said.
By contrast, Howansky said, the teachers at Doty “know every kid’s strengths and weaknesses across the whole building.”
That doesn’t mean that she and her neighbors are blind to demographic or economic realities, especially when housing, health care and so much else is getting more expensive. Early in December, for instance, Vermonters learned that property taxes would likely be spiking again next year, by nearly 12 percent on average.
“A lot of people are saying, if we fight this again, are they just going to come back and try again next year?” Howansky said. “And is it fair to the children to live under this constant threat and this constant stress of not knowing?”
She still thinks the fight against a merger is worth it, but said, “Everyone has to figure out where to draw their individual line.”
Contact editor Caroline Preston at 212-870-8965, via Signal at CarolineP.83 or on email at [email protected].
This story about rural school closures was produced by The Hechinger Report, a nonprofit, independent news organization focused on inequality and innovation in education. Sign up for the Hechinger newsletter.
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