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The Relation of Palo Alto School Finance and Development--Background Concepts and Data Sources
Here is an excerpt:
'First, all commercial development that adds to the tax base without adding students is a net gain to local school funding. Second, there are many types of housing development that add few or no students such as housing for seniors whether to downsize or for other reasons, and smaller housing for 1 or 2 person households—studios and one-bedroom units.
So if you want a development policy that favors school funding, you would favor high property tax commercial development and smaller housing units. Note that while hotel taxes and sales taxes do help the city budget, only property taxes help fund schools."