It totally sucks to be sure....but you're just feeling the effects of the housing bubble popping.
Schools are funded mostly through property taxes. Property values have plummeted, and so have tax receipts. Add to that the number of vacant homes on which no taxes are being collected and it gets even worse. More so in California than almost anywhere else.
I hate to sound like an ass, but unless you and 50% of the other parents are willing to vote yes on a tax increase, there's not much you can do.
If they don't cut school funding, then they have to cut police, fire, or hospital funding.
There's no easy way to fix the problem.
