SAN FRANCISCO - California public schools once ranked among the best-funded in the country, but a growing number of districts in the nation's largest public school system now say they're in full-blown crisis mode.

Seven warned the state they can't pay their bills this year, and 55 others say they may fall short of cash in the next three years. In one extreme example, the West Contra Costa Unified School District eliminated all sports, closed its libraries and laid off more than 200 employees last month.

The 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."

Educators point to a confluence of economic and political constraints at the federal and state level that have forced California schools to slash programs, lay off staff and increase class size.

The problems include a state budget deficit projected to reach $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.

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 near the bottom 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.

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.

Solutions remain elusive and controversial. Voters approved a $12.3 billion school construction bond in March, but the state's largest teachers union and director Rob Reiner dropped plans Thursday for an initiative to raise property taxes to pay for education and preschool programs.

The decision came after anti-tax groups claimed the measure could have raised residential property taxes, despite assurances from supporters that it would only affect commercial property.

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