This is sad -- there is a need to restrict access to a limited resource, but for any individual parent, it's the right choice. The ultimate solution is to improve the quality of the bad districts, but that will take a long time.

For now, I think the best approach is strict enforcement of residency, but three tracks in for out of district students: cash payment substantially in excess of per-student marginal cost; competitive entrance for a limited number of students based on objective merit (not race based, like the PA/EPA system); and children of employees of the district (or maybe of city government in general).

I'd be fine with a parent who really wants to give a child a chance taking a job with the district primarily to get children into the schools. Maybe a second job, maybe part time, but the sacrifice should be made by the parent, not by other residents of the school taxing district. If this lets the district hire people more cheaply, or of better quality (which DOES happen in Palo Alto for just this reason), it's win/win.