A state district judge ruled Monday that Texas' method of funding public schools was inadequate, unfair and unconstitutional.

The decision still has to pass muster with the Texas Supreme Court, as the state is expected to appeal the ruling later this year.

But Monday's bench decision was a victory for the roughly 600 school districts— nearly two-thirds of Texas districts—that have sued the state through five seperate lawsuits over the current funding system.

At the heart of Judge John Dietz's ruling is his belief that education in Texas is woefully underfunded and that the current system of paying for it with property taxes creates an unconstitutional statewide tax.

"We either want increased standards and are willing to pay the price, or we don't," Dietz said in his bench ruling, which came after about 15 weeks of testimony.

The state, which lost nearly every argument, is expected to appeal after Dietz releases his final written ruling next month. The one subject the judge left up in the air was charter schools, which he said was the purview of the state legislature.

Reaction to the ruling

School districts and teacher groups throughout the state celebrated the ruling.

"We are pleased with the ruling and proud of the strong leadership from Superintendent [Charles] Dupre on behalf of Pflugerville ISD students and all Texas students," said Elva Gladney, Pflugerville ISD board of trustees president. "Our staff at PISD works hard to provide an outstanding education to our students and prepare them for college and life after high school, and adequate and equitable funding is an essential piece in that mission."

Lawmakers last session cut some $5 billion from education funding and programs, sending a wave of layoffs and other fallout through districts throughout the state.

According to a statement by Pflugerville school officials, PISD stands to receive "millions more in state funding each year if it received similar funding to neighboring districts."

An argument made by districts—and upheld by Dietz—was that the funding was unfairly distributed and left children in poorer districts at a disadvantage.

Round Rock ISD is grouped in one of the lawsuits that includes more than 60 school districts, including Austin ISD and Hays CISD. Round Rock Superintendent Jess Chvez noted the Feb. 4 court ruling was only the first hurdle in changing the state's school finance laws.

"We are pleased with the judge's decision; however, an appeal will be filed at a higher court, and it may take years before districts receive much-needed relief," Chvez said.

Hutto ISD's budget was hit hard when the cuts to state funding coincided with declining property values and increasing enrollment. In 2011, the district cut several art, music and school counselor positions at district schools when voters refused to pass a tax ratification election designed to offset the declining state funds. Following the staff cuts, voters reversed course in 2012 and passed a tax increase intended to restore the positions and provide additional district funding.

"We are excited about the ruling, not just for our students, but for our taxpayers as well," HISD Superintendent Doug Killian said. "[HISD] was one of the first districts to sign on to the lawsuit because of the inequity in the system and how drastically it affected our district. We hope this ruling will inspire excellence in our Legislature, as that's our mission. They have the opportunity to fix the school finance system once and for all."

Restoring funds

Leaders have said the funding cuts in the previous legislative session were unavoidable because the state faced a historic shortfall of up to $27 billion, but legislators have also not earmarked any replacement funding during the current legislative session—even as the state is flush with cash from oil and gas profits.

Lt. Gov. David Dewhurst has advocated holding out money to pay into the system in anticipation of having to spend more money on schools in light of a supreme court decision.

But he and other leaders have deferred action on either overhauling the school finance system or restoring any funding until after the Texas Supreme Court makes its ruling—an idea that does not sit well with some lawmakers who fought the cuts last session.

"I think all the talk about deferring to after the session, until the [Texas] Supreme Court rules, may have merit on the question of how we distribute the money among the districts, but I don't think that it has merit with regard to the very important decision of how much money the system requires," said Rep. Mark Strama, D-District 50. "I don't think we need a court to tell us that the system is not producing the results we demand from it."

The Texas branch of the American Federation of Teachers also urged lawmakers to act and not wait for a ruling, which could come next year.

"Today's ruling should spur the Legislature to do what it ought to be doing anyway—using the state's resurgent revenue to restore school funding that was cut severely last session and reforming the school finance system to satisfy constitutional requirements," Texas AFT President Linda Bridges said. "The inevitable appeal that the state's lawyers will pursue in this case must not become an excuse for legislative inertia. The state needs to invest more in public education immediately because the kids can't wait."