I've already blogged about the effects of the current economy on schools, class sizes, etc.
Here is a recent article justifying teacher layoffs with the lack of research showing that small class sizes are better.
Interesting line from the article: "It's much better to have a large class with a good teacher than a small class with a mediocre teacher," said Eric Hanushek, education researcher at Stanford University.
I've used that line before as well. Never used it justify classes over 30 though.
Update: Yikes, more bad news on this front out of Illinois (hard to believe I once lived there.)