Palo Alto district is a basic aid district. This means that they get no money from the state...they have parcel tax to fund their schools. Palo Alto is a wealthy enclave in CA. They don’t have to deal with the restrictions of other counties and school districts.

[..]Some districts, known as “basic aid” or “excess tax” districts, fund their revenue limit entirely through property taxes and receive no general purpose state aid. They also retain any excess property taxes within their district. ... Basic aid districts are generally more advantaged than other districts.[..]