Let's just do a hypothetical then.  A quick look through staff directories suggests that by consolidating functions, half the admin staff in two of the four districts could be eliminated.  Looks like that would total maybe 20 people island-wide depending on how you define administration (are facility maintenance people 'administration'?).  

Let's estimate that each body costs $100K with benefits (probably high, some are part time most likely).  That comes to $2M.  The total state POW budget is around $16M.  So that saves 12.5%.  Not bad, though it does leave 20 people unemployed on the island, which is a pretty big hit.  

So how do we get to the remaining 37.5% reduction?  Starts getting a lot harder, doesn't it?  Time to start shutting down schools and eliminating teachers. Shut down the school and you pretty much shut down the town.