Judge rules state school finance system unconstitutional

"The school finance system is constitutionally inadequate because it cannot accomplish, and has not accomplished, a general diffusion of knowledge for all students due to insufficient funding," Dietz's ruling states.

The Legislature cut $5.3 billion from the public education budget in 2011, and about $3.5 billion of that was reinstated in 2013.

The education budget cuts came at a time of increased student growth, raised academic expectations and a more diverse student population including a higher number of economically disadvantaged students, court documents state.

The state is likely to appeal the decision to the Texas Supreme Court. Lawmakers could tackle the issue during the next legislative session, which begins in January.