I have to admit I'm surprised that small schools save money; I always assumed that the move to big schools had to do with economies of scale. But it's good to find out that they are in fact more efficient.
I personally don't doubt their virtues. My daughter goes to a K-8 Oakland public school that has about 300 students. 80% of the students are minorities and most of these are African-American (or whatever the pc term is). The school is quite good; there are no discipline problems to speak of. The parents are very involved. Most of the teachers are excellent.
Joanna