IMO there is no one single cause for the state of these schools. It's definitely not all finances. On a $/student basis, some of the most expensive schools have some of the worst records. My take on the funding problem is that you are stuck paying for the local school system whether you actually like and or use it. It makes moving your kid to a different school difficult. I know I've said it before but at the risk of being a broken record:
I just love paying for two educations for my kid, the one I get charged for through my property taxes and the one I'm actually providing for him since I think the first one sucks.[/sarcasm]
We're actually moving to an area where the schools are top-notch, and we're paying for it with the price of the house. We can have the exact same house by the exact same builder for up to 15% cheaper in another neighborhood, but the schools that service that neighborhood are not so good.
Ironically, the property taxes are lower for the house with the better school, and both neighborhoods are in the same school district.