1 Government of Michigan website: http://www.michigan.gov/gov/0,1607,7-168-22079-110164--,00.html (accessed May 16, 2007).

2 Detroit Free Press Editorial Board, "Q&A With Gov. Granholm: Moving forward: Education to jobs," Detroit Free Press, February 10, 2005.

3 Snyder, T.D., Tan, A.G., and Hoffman, C.M. (2004). "Digest of Education Statistics 2003, (NCES 2005–025)." Washington, DC: U.S. Department of Education, National Center for Education Statistics, p. 204.

4 Kalyan Chakraborty, Basudeb Biswas, and W. Cris Lewis, "Economies Of Scale In Public Education: An Econometric Analysis," working paper, Utah State University, Department of Economics, March 1999. http://www.econ.usu.edu/Research/99/ERI99-11.pdf (accessed February 12, 2007).

5 Vicki Murray, "Competition or Consolidation? The School District Consolidation Debate Revisited," Goldwater Institute, Policy Report No. 189, January 12, 2004.

6 William Duncombe and John Yinger, "Does School District Consolidation Cut Costs?" Working Paper, Center for Policy Research, Maxwell School of Citizenship and Public Affairs, Syracuse University, October 2003, p. 27. http://faculty.maxwell.syr.edu/jyinger/Working%20Papers/Does_School%20District_Consolidation_Cut.pdf (accessed February 12, 2007).

7 Matthew Andrews, William Duncombe, and John Yinger, "Revisiting Economies of Size in American Education: Are We Any Closer to a Consensus?" Economics of Education Review, vol. 21, no. 3, pp. 245-62. A pre-publication version of this paper is available on-line at: http://www-cpr.maxwell.syr.edu/efap/publications/revisiting%20economies.pdf (accessed February 12, 2007).

8 For the underlying mathematics of the robust variance calculation, see P. J. Huber, "The behavior of maximum likelihood estimates under nonstandard conditions," in: Proceedings of the Fifth Berkeley Symposium on Mathematical Statistics and Probability (Berkeley, CA: University of California Press, 1967), vol. 1, p. 221–223. Also see H. White, "A heteroskedasticity-consistent covariance matrix estimator and a direct test for heteroskedasticity," Econometrica, vol. 48 (1980), p. 817–830. For the Stata implementation of Huber/White/sandwich robust standard errors with clustered data, see W. H. Rogers, "Regression standard errors in clustered samples," Stata Technical Bulletin, vol. 13 (1993), p. 19–23. Also see R. L. Williams, "A note on robust variance estimation for cluster-correlated data," Biometrics, vol. 56 (2000), p. 645–646.

9 http://www.census.gov/Press-Release/www/2002/sumfile3.html.

10 Ibid.

11 Ibid.

12 Julie Novak, "Public Choice Theory, An Introduction," Policy, Autumn 1998. http://www.cis.org.au/policy/autumn98/aut9810.htm (accessed February 12, 2007).

13 Larry DeBoer, "Criteria for a Good Tax System," presentation to The Citizen’s Commission on Taxation, June 10, 1997. http://www.agecon.purdue.edu/crd/localgov/essays/goodtax.htm.

14 http://www.census.gov/Press-Release/www/2002/sumfile3.html.

15 Ibid.

16 For an explanation of this test, see: http://en.wikipedia.org/wiki/Ramsey_reset_test (accessed February 12, 2007).

17 Caroline Minter Hoxby, "How Teachers’ Unions Affect Education Production," The Quarterly Journal of Economics, August 1996, p. 671-718.

18 For an explanation of Lowess curve fitting, see: http://en.wikipedia.org/wiki/Local_regression (accessed February 12, 2007).