"It's a result of tremendous budget problems over the last two years," said Stephen Rowley, the district's superintendent. "Last year there were significant financial aid cuts from the state, and a drop in property taxes." The district has lost an estimated $8 million in budget cutbacks over the last two years.

Students enrolled in district schools under false pretenses have intensified the existing budget problems.

These students are "sucking us dry" Rowley said. He estimated it cost approximately $7,000 to educate a student. In addition, he said by cutting students the district also avoids having to increase classes and add teachers.

"If you catch 25 students, that's a class," Rowley said, pointing out adding teachers is especially expensive given the costs of salaries and benefits.

The district has already been cutting. According to Cindy McArthur a district spokeswoman, employees took a 4.9 percent pay cut last year to avoid layoffs and program cuts. At a Jan 11. board meeting, trustees approved the change in residency requirements as a way of avoiding future cuts. As a part of a parcel tax passed last November, the district is also obligated to "weed out" students who have lied about their residency.

Under the new rules, parents must provide:

*picture identification such as a current California driver's license;

*valid vehicle registration or recent tax return forms;

*property tax bill or rental/lease agreement with parent's name,

student's name and manager/owner name and telephone number;

Utility and telephone bills and deeds are also no longer accepted as proof of residency since they are easy to download off the Internet and falsify.

Rowley stressed the district is not targeting illegal immigrants. "If they live in the district, we are obligated by law to educate them. The bigger issue is the number of students whose parents are lying about where they live."

"It's also a matter integrity," he said. "We want to set an example as a model of honesty for the students."

Rowley said he has been surprised so far by the number of students failing to meet the requirements. He estimated the number of falsely enrolled students could approach 1,000. He also said the post office had returned more than 100 letters to parents informing them of the new policy.

The change could translate to up to $3 million in savings for the district. The cost for students, teachers and neighboring districts, however, could be mixed.

Lynbrook junior, Stephanie Chen, called the move unfair. Although not affected by the policy, Chen worried about the educational fallout for friends forced to shift schools during the academic year. "Why couldn't it wait? Why does it have to happen in the middle of the school year?" she asked.

However, Rowley said students and teachers will benefit by the reduced class sizes and spared programs. Nearby districts such as those in Santa Clara are also taking note, he said. He said that school districts on the east side of San Jose and in Campbell could also benefit from an increase in students as their funding is based on student counts.

"We're different because we are a basic aid district," Rowley said. As a basic aid district, the district's schools rely on funding from property taxes, which have gone down during the recent economic recession. At the same time costs have gone up.

"Two years ago enrollment grew, but the resources didn't," McArthur said. She explained the district then had to absorb the costs of the extra students because--unlike many school systems--it is not paid by the state per student. The district serves 9,500 students at five high schools: Cupertino, Fremont, Homestead, Lynbrook and Monta Vista.

So far, Rowley said, "the parents have been very, very pleased [by the crack down], and it's only been a minor inconvenience for the schools."

For more information on the residency requirements visit www.fuhsd.org.