Is Bigger Better

Interesting article in the Wall Street Journal today about the growing push too consolidate smaller municipalities, which is something we've discussed here a few times.

Best tidbit.

Researchers, however, have raised questions about whether such consolidation actually delivers significant savings. Typically, they say, only a few administrative positions overlap between jurisdictions, and further savings can't be realized without compromising service. Public-safety agencies, for example, need a certain staff level to ensure the response times that residents demand.
A 2004 study by Indiana University's Center for Urban Policy and the Environment found that costs creep back in, partly because bigger pools of employees can negotiate for better wages, offsetting the savings of job cuts. Academic studies of Jacksonville, Fla.'s combination with Duval County, and Miami's merger with Dade County found that costs actually rose post-merger as new bureaucracies emerged.
In a study of Wheeling, W.Va.'s proposed merger with surrounding Ohio County, Mr. Rusk, the ex-mayor of Albuquerque, estimated that the potential cost savings would be barely 2% of the combined budget, because the overlap of services wouldn't be as extensive as expected.

I sort of agree with the findings. I think we might see some savings in consolidating say The Newburys, but would they be substantial enough to consider?