Between 1970 and 1990 enrolment in Newfoundland and Labrador schools dropped by 22 percent. The first wave of major educational reform (1990 to 2000) saw massive reductions in public school expenditures and the reduction of more than 1650 teachers. Facing continued enrolment loss and a large current account deficit, in 2004, government again consolidated school districts. In this paper I examine the 1997 and 2004 reforms and argue that the "rationalization" agenda set by government was aggressive--driven primarily by fiscal and corporate factors. While the reforms accomplished their corporate goals, they also resulted in educational and organizational costs which should be weighed against potential benefits. (Contains 2 tables and 4 footnotes.)