SANTEE, Calif. -- A local school district is doing its part to save water and money, but 10News reveals why the state of California is preventing the district from saving even more.

P.E. class at Carlton Hills School in Santee is a lot more fun now that students can play on grass instead of dirt.

The grass at Carlton Hills is growing thanks to the use of recycled water. When voters approved a $60 million bond in 2006 to update schools, the Santee School District decided to update the water system as well.

Five schools installed low-flow faucets and waterless urinals. Working with the Padre Dam Municipal Water District, Carlton Hills began using recycled water, which is 10 percent cheaper.

In the past six months, the five schools have used 25 percent less water -- with four more schools in the district that still need to be modernized.

Santee School District Superintendent Pat Shaw said, "We have approximately $30 million that has been approved for moving forward with those schools, but the state has no money to provide us with that."

Shaw said state budget cuts mean the district can't modernize the other schools even though voters approved it.

"What's your level of frustration with the state right now?" asked 10News' Joe Little.

"Pretty high," said Shaw.

Shaw said the district is better off thanks to the water cuts. The 25 percent savings means they are also saving about $50,000 a year on their water bill.

"It allows us to possibly provide more supplies within the classroom or save a teaching position within our district," said Shaw.

The schools are also using the upgrades to teach students about conservation.

Carlton Hills School Principal Terry Heck said, students operate a campus garden using drip irrigation.

"They're not only maintaining the garden but then they are learning about water savings and so on," said Heck.