Perry may face school money problems

AUSTIN (AP) - With budget problems mounting for many Texas school districts, the next governor will likely inherit a funding system experts said has become a legal and financial quagmire.

As the state's top executive officer, the governor will guide the $35 billion public school system and its 4.4 million students.

Experts said the system needs a major overhaul to make sure schools get enough money to keep pace with costs and avoid another lawsuit.

School consultant Joe Smith is a former school district superintendent. He said he thinks "the situation will manifest itself or start manifesting itself in 2011 in an extreme way."

"There's going to be a whole lot of districts that are going to be up against the wall," said Smith.