Over the last seven years, nearly 400 students have left the public school rosters in Santa Barbara. Enrollment in this wealthy, Spanish-tiled coastal haven has dropped as steadily as home prices have risen.
It is a trend expected to continue as the median home price pushes past $1 million.
It is also a trend that increasingly appears to be occurring across California.
Public schools circling downtown Los Angeles are losing students as their neighborhoods gentrify. A similar shift is underway in the Bay Area, Sacramento and Los Angeles, and Orange and Ventura counties.
Statewide, public school enrollment was down slightly this year, for the first time in nearly a quarter of a century. And though officials aren't quite sure of all the reasons behind the drop, they are sure that the cost of housing is one of them.
In Santa Barbara, school administrators worry about lost revenue, because funding is tied to enrollment.
Already, administrators said, the decline has cost the district millions annually. Now, having made small, less-painful cuts, they are considering larger steps, such as selling off vacant property or building housing to sell to teachers at below-market value.
Building the houses, they say, would help recruit teachers, who otherwise might not be able to afford the area, and the school system would bring in some revenue from the sales.
Another option is to start closing schools, a move that is always unpopular, said Jan Zettel, the Santa Barbara School Districts' assistant superintendent of secondary education.
"We don't think we will have to close a school in the next year," he said, "but beyond that, yes, it's entirely possible."
In the 2005-06 school year, statewide school enrollment dropped for the first time in 24 years. There were 6,313,103 pupils enrolled, a decline of about 10,000 from the previous year, according to state Department of Education records.
State officials aren't sure whether the trend will continue. Projections had called for continued student growth through at least 2010, said Donna Rothenbaum, a spokeswoman in the education department's demographics unit. She said several factors could contribute, including local job losses, changes in migration patterns and lower fertility rates. But a major trigger, analysts say, is the state's sky-high housing market.