It's a vicious cycle, but the cycle is almost over. The citizens don't have the money and, if the taxes are raised, those that can will leave like scalded dogs. This school district is already notorious for low test scores and is not sought by those that are most needed. Otherwise, the drastic changes of severe cuts are in the near future.
Who's to blame? In the end you can only blame the citizens. They're ultimately in charge and responsible for their school board.
Who suffers most? Those that inspired the whole damned idea of a school district: the students. If they finish high school, their education is suspect and their chances of success in a tight job market, or in higher education, are reduced.
Considering the amount of money that's been pissed away, it would have been better spent on teaching many of these students skilled trades and basic communication skills. Those are things that can allow a lifetime of earning abilitities. The country needs these type of people and shouldn't have to look at foreign workers to satisfy the need.