Various changes have swept across California's system of education over the past few years--tax limitations, equity of spending allocations, declining enrollment, and mainstreaming, to mention a few. Interviews with 104 educators conducted in 1978-79 in the San Jose Unified School District revealed how those at all levels of a local school system felt about the impact on education of these social and economic changes. The results showed considerable concern, highlighted by a sense that the public was altogether unhappy with the performance of local schools. Teachers and administrators reported that they were working harder than ever, under worsening conditions and for fewer rewards. Many teachers indicated plans to leave the profession. Major responsibility for the situation was attributed to reductions in funding due to passage of Proposition 13, and additionally to poor public attitudes toward education. The findings point to the importance of close monitoring of the perceptions and attitudes of local school staff in California and elsewhere. (Author/PGD)