Enrollment in the Santa Ana Unified School District is down for the fifth straight year.
New district figures show that Orange County's largest school district dropped by 1,146 students this fall and a total of 7,300 students since the 2002 to 2003 school year.
The district's associate superintendent of business services Donald Trigg says declining enrollment numbers mean cutting costs.
The district, which has about 53,700 students, receives roughly $5,500 in state funding each year for every student enrolled.
More than $40 million has been lost over the past five years.
The dip has been attributed in part to lowered birth rates and young families moving out of the county because of high housing prices.