The purpose of this study was to determine if the cost structure of small schools located in large Wyoming school districts differed from the cost structure of small schools located in small districts across the state, and if a difference was found to recommend possible changes to the small school adjustment in the Wyoming school funding model. Four separate analyses were undertaken to answer this question: (1) a review of the literature on economies of scale in education; (2) a comparison of the characteristics of small schools in large districts with small schools in small districts; (3) a comparison of the revenues generated by small schools through the funding model with the amount districts report being spent at each of the small schools; and (4) interviews with superintendents and business managers in large districts. The review of the literature suggested that Wyoming is correct in its assumption that there are additional per pupil costs of operating small schools. However, the analysis did not find any evidence--or any specific research--as to whether the size of a school district also impacts those measures of economy of scale.