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This study examines how "race-neutral" school choice policies perpetuate educational segregation within a Northern California school district, focusing on two elementary schools with starkly different demographic and resource profiles. Using a qualitative case study approach enhanced with systems dynamics modeling, the research investigates how families navigate school choice, how educational leaders address segregation, and what strategies might promote equity. Drawing on Critical Race Theory frameworks, findings reveal increasing racial and socioeconomic segregation between the schools, with corresponding disparities in resources and funding. The study contributes to understanding how seemingly neutral policies maintain educational inequality while offering practical recommendations for district leaders working toward educational equity.