In an LBO piece with lots of basic numbers about education, Doug Henwood 
writes:

"Current — as opposed to capital — [education] spending in the U.S. 
shows an unusually large share [compared with other countries] devoted 
to administrative and support staff, and a small share devoted to 
teachers’ salaries. ... (More on this in #133, but one reason for the 
high administrative costs in the U.S. is the fragmentation of school 
systems. Every little town has its own system — a huge duplication of 
effort.)"
http://www.leftbusinessobserver.com/InAndOutOfSchool.html

It is more than fragmentation. Urban school districts become heavy with 
experts, specialists for certain kinds of students, program coordinators 
and other bureaucracy. Perhaps Doug's follow-up will shed light on the 
dynamics at work. A similar thing goes on in large city governments: 
fewer people doing work like infrastructure maintenance, more staff 
generating paper and holding meetings with each other. The change over 
the last two decades is quite noticeable.

Charles Andrews

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