Hi TD,
I suppose you need a clear idea of your requirements and an even better handle on your budget. Then approach a few companies and discuss whether they can provide what you need, for what you can spend.
I'm guessing you won't have the recurring budget for VMware so perhaps would be best looking at open-source virtualization (sic) solutions. It is possible to make a large difference to your systems capability without spending a massive amount.
If you can live without flashy front end software to handle most things (and believe me, you can ), you can find a lot of your IT budget dripping back to you, as you won't need to pay the flashy yearly license fees either.
Same goes for SANs. Sure, they can be expensive but a workable SAN solution needn't cost an unfeasible amount of money - even for a small primary school.
Talk a lot with people who know, maybe discuss with those who build (and not simply resell) the types of systems you require.
The main thing though is to be very clear on what you need right now and for your forseeable future requirements. Get a clear idea of what is on offer against those requirements and budget and then sit down and make an informed choice.
Best regards,
Chris