That little money? Let’s play some more with the numbers.
Assume the school is full. Put 30 students in a class, each paying 5000. Each class is 150K in revenue. I see no difficulty in staffing the class with a full day’s curriculum using 2/3 of the money or less. That leaves 50K per class to pay administrators, buy (used) textbooks, pay their share of housing expense of the school, etc. I further expect that this structure (fixed funding model) would lead to schools building an economies of scale to maximize efficiency of spending.
My model for comparison is any charter school. Have a look at how they run. They receive a fixed amount per student and have no compunctions with cutting extra programs or classes due to budget limitations. Not so the public school system with its rubber budget, and unfortunately – the yeshivos who operate as though they have a rubber budget.