From one of the homeschool networks I am on:
I just did this for the first time this year, and it was easy! If you go to the register at Palace Arts in Capitola and tell them you're a teacher (they're fine with homeschoolers), they sign you up for a discount card, give you a bag of free goodies, and sell you an enormous quantity of pencils for dirt cheap. And not only are they OK with homeschoolers, but the discount always applies for all teachers, even if they're buying something personal. So no need to feel like you're cheating anyone by buying a gift there as well.
And Ocean Grove moms, I am almost positive Palace Arts is an OG vendor, too!