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That's not completely true. Schools in California still receive about 25% of their funding from local property taxes (8.3 Who Pays: Where California’s Public School Funds Come From | Ed100). Try whacking a school's budget by 25% and see what happens. And, of course, once you cede local funding you cede local control. Don't think for one minute the state doesn't exact its share in blood.
Get ready for a statewide riot from people who paid up in higher home values and property taxes for good local schools as people who didn't seek to crowd into them.
The source of the money is partially from property taxes, yes. Yet, a school in an area of million dollar plus homes doesn't get more money than one in Watts. The money paid to the school is based on the attendance.
Would people riot if the unwashed masses were allowed into their exclusive neighborhood schools? Maybe they would, maybe not. It would still be a better use of tax money to allow the poor children who qualify to go to a good school than to admit every kid with affluenza in regardless of merit or potential.