California's enormous K-12 public school system is mired in the worst funding crisis in its history, forcing districts throughout the state to impose cuts so deep that academic achievement likely will suffer.

Practically every state faces daunting school funding challenges, but the situation is particularly severe in California, which has the nation's largest public school system, educating one of every eight students in the country.

Educators point to a confluence of economic and political constraints at the federal and state level that have forced schools from tiny rural communities to the sprawling Los Angeles Unified School District to slash school programs, lay off staff and increase class size.

These include a struggling state economy and state budget deficit, projected to be $14 billion next year; declining student enrollment in some places and explosive growth in others; spiraling health care and workers' compensation costs; and intractable state and federal spending mandates.

The problems have led to student walkouts and mass protests, including a 70-mile march to the state capital by parents and teachers pleading for more money for the troubled West Contra Costa school district.

California's public schools were among the nation's best funded before voters in 1978 approved Proposition 13, slashing the property taxes that provided key revenues. Today, California ranks about 44th in average per pupil spending.

A voter backlash led to Proposition 98 in 1988, which guaranteed minimum funds for K-12 schools. But California's school spending has declined in recent years to about $6,500 per pupil per year, while states like New York and New Jersey spend close to $11,000.

The biggest problem, many say, is a political environment that pays lip service to the importance of education but doesn't deliver the resources needed for even basic services.

"There's never been a time that I've been more concerned, more worried, and more fearful of the impact of budget cuts," said Brett McFadden of the Association of California School Administrators. "We have a situation in California where there's a huge disconnect between what the electorate wants and what the electorate is willing to pay for, and Republicans and Democrats alike need to admit it."

Republican Gov. Arnold Schwarzenegger campaigned on a promise to protect public education. He negotiated a deal in December to delay $2 billion in payments to public schools in exchange for no further cuts, and has proposed freeing $2 billion in mandated programs so that schools can spend it as they see fit.

"He definitely followed through on the promises he made in the campaign, and the proof is in his budget," said state finance spokesman H.D. Palmer.

But escalating costs are forcing drastic choices.

One extreme example is the West Contra Costa Unified School District, which eliminated all sports, closed its libraries and laid off more than 200 employees last month, largely due to the costs of a decades-old deal to provide health insurance to employees and their spouses for the rest of their lives. That agreement will cost the district $9.5 million this year, rising 15 percent to 20 percent next year.

A growing number of districts now say they are in full-blown crisis mode. Seven have warned the state they can't pay their bills this year; 55 others say they may fall short of cash in the next three years.

The districts in crisis are as diverse as the Vallejo City Unified School District, with a $131 million budget, and the West Fresno Elementary School District, with an $8 million budget.

"We are getting a call or an e-mail a day from districts asking for management assistance," said Tom Henry, whose Fiscal Crisis and Management Assistance Team offers state management help to struggling schools.

Vallejo, a San Francisco Bay area suburb that has lost students because of soaring housing costs, has applied for an emergency $20 million state loan after cutting personnel, eliminatimg elementary music programs and raising class size in some elementary grades from 20 to 30 students. But by accepting the bailout, the district will have to surrender its management to a state administrator until the loan is repaid.

Small towns aren't immune -- the rural district of Corning in Northern California has cut teachers and raised some class sizes to 38 students -- and still may not pay this year's bills.

"This has been the most contentious, awful year I have spent as a school administrator," said Corning superintendent Richard Jukes. "We have been focused on money issues, not learning, and that's not where we want to be."

Solutions remain elusive and controversial. Voters approved a $12.3 billion school construction bond in March, but the California Teachers Association dropped their plans Thursday for an initiative to raise commercial property taxes to pay for education.

"We waste so much money in this state on administration and bureaucracy," said Jon Coupal, the association's president. "We'd love to see more money go down to the classrooms and we'd love to see merit pay, but the whole educational establishment is run by unions."

Ultimately, Schwarzenegger and the legislature should consider tax increases, many educators say.

"Arnold was going to come in and make it all right -- you say what you say to get yourself elected," said Bob Bronzan, deputy superintendent of the Livermore Valley Joint Unified School District. "Now, do something about it."