Too Optimistic About California Schools?

I wrote a couple of days ago describing the upcoming improvements at Stocklmeir Elementary School. Now I'm not so sure about them.
The recent news is that if the Governor's budget is passed by the legislature, schools will get only 90% of what they expected in 2008-2009, or about $740 less per student.
If this cut does pass, we can expect that classes presently shrunk to 20 to 30 students will swell to the high 30's again, that teachers may be discharged, and that "non-essentials" such as art, music and phys ed will be eliminated.
As it is, California has only three percent of students in districts with per-pupil expenditures at or above the U.S. average. Can we afford to drop any lower?