There's a big difference between "sorry, we can't afford pads" and "your fundamentals suck. Git gud, n00b." And that difference is a bad band teacher.
Also, the student or parents were willing to pay for private lessons. My private lessons all the way back in the 1900s cost 3-4x more than clarinet pads cost now. I'm sure they would have much rather covered the cost of new pads.
Finally, back when I ran technology for a middle school, I'd often help the band teachers repair and maintain instruments while chatting in my free time. If a band class/school district can't afford clarinet pads for years, then they are weeks away from every single instrument turning to dust in the hands of teenagers.
Which brings me back to my main point: if a school-owned clarinet has bad pads for years, then that band teacher ain't band teachering.