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OC doesn't even have school busing. They say it's because of proposition 13 (which is problematic) but the funds for OC schools are not substantially less than elsewhere in the country where the schools are on average better and there are services like busing.

Where is it all going?

Probably to bloated administration. Colleges are the same story. Tuition has risen massively yet there are fewer tenure track positions for good professors. It's all going to administrators.