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This article presents an economic decision model for planning in public education, considering the satisfaction of the total demand for education in a municipality and the annual cost involved in the system. Given a set of established schools in a municipality and possible new locations, the aim of the model is to find the optimal supply in terms of which schools should be kept open or closed, which grades (or year levels) should be made available and the number of classes that should be provided within each such grade to meet student demand. The model includes specific information about curriculum requirements in terms of the number of hours per year per subject to be provided for each grade level. The objective function essentially seeks to minimize the total fixed and variable costs to schools, which mainly relate to human resources (principal and direction, teaching, administrative, and support staff). We propose an integer optimization model for solving this problem and we apply it to two large municipalities in Chile. [ABSTRACT FROM AUTHOR]