What sort of state are we? 
One that spends more and more for less and less.  One that complains about class size but does nothing about it because all increases go to compensation increases and PERS (retiree) costs.  One that is dominated by the OEA ... at the district and state levels.
The increase in costs is unsustainable.  The whole education industry must be revolutionized - with nearly all current instruction in common subjects being done by distance learning and/or computerized instruction.  
$13,000 per student works out to $325,000 for a classroom of 25 kids.  If we pay the current teacher $30,000-$65,000 (plus benefits) and one retired teacher  $50,000 - $70,000, where does the remainder go?
Why do we permit high dropout rates?  Why do we permit failure to learn to read or do math?