I'm going to cop out and give the lawyer answer....it depends.
It depends on how comfortable you are price wise and tax wise in that area and how well you would be able to absorb an 8.6% tax increase if no budget cuts were made. It depends on what age your children are currently. Will a cut to half day kindergarten affect them if that's one of the steps they choose to take. Are your kids particularly musical or athletic, so that program cuts would affect them?
If it were me buying the house and facing the decision, I would not let it deter me from purchasing in an area I otherwise liked, assuming I could afford a significant tax increase. The one thing that would give me pause is the closing of schools, which would result in larger class sizes, but it would depend on how much larger the classes would be and how that size compares with the other public school systems in the area.