Funny, I noticed that the Unofficial Guide doesn't even show it on their calendar. So I called to ask why not, and they said it doesn't have a material impact on crowds.
Actually, the WHOLE state of LA does not have the week off. Only Southeastern LA and then not all of them have the whole week off. Some only get the Mon, Tue, Wed off. We live in western LA and the schools here don't get any time off. I homeschool and my older son attends in New Orleans, so we are going that week anyway.
We were there Feb '06 and everyone seemed to be from LA. It was not crowded though at all. The night we went to the Hoop Dee Doo, one of the performers commented that it seemed that everyone there was from New Orleans and made a big deal about it. It was also the first Mardi Gras post Katrina and a lot of people needed to get away.
Don't worry about the crowds too much, it is much less than Jersey week. But, I have to warn you, some of us talk just as funny as those NJers.
BTW, I had a site reserved for that week but could not get a
AAA rate applied when I called today as they were already gone!!!

So, I called AAA and booked a package. It is the same price quoted through WDW and about $150-200 more than my buying my tix seperately. I went ahead and booked though for the convenience. They will keep checking and apply any discount when it becomes available. Also, the tix will be on our KTTW card and I can try the Diamond parking and discounts.