After three years of failure, 2006 could finally be the year legislators are forced to decide how Texas will pay for public education.

For Texans, that probably means a sizable break on high property taxes.

But they also may see higher sales, cigarette or car and boat taxes to make up the difference.

Businesses will likely pay new or higher taxes, too, which they'll pass on to consumers.

Gambling proponents also are expected to make another run at legalizing casino gambling in Texas to generate education dollars.

The Texas Supreme Court ruled this year the state's reliance on property taxes to fund its $33 billion education system is unconstitutional

The court mandated a freeze on school spending if lawmakers don't devise a new funding system by June 1.

Most of the state’s more than one-thousand school districts would shut down within months without state money, which makes up at least half of the districts' annual operating budgets.

School Finance Timeline
(Source: The Associated Press)

1989: The Texas Supreme Court throws out the state's school funding law after finding "glaring disparities" between rich and poor school districts.

1993: Days before a court-imposed deadline threatened to close Texas schools, the Legislature forces school districts in areas with healthy property values to share their tax collections with poorer districts as a way to fund schools.

1995: The Texas Supreme Court upholds the share-the-wealth system, nicknamed "Robin Hood."

2003: Attorneys for property-wealthy school districts argue before the Texas Supreme Court that the school funding plan is inefficient and has created an illegal statewide property tax after many districts pushed collections to the legal limit.

April 20, 2004: The Legislature meets in a special session called by Republican Governor Rick Perry to address school finance. The session ends two days early when lawmakers fail to pass a new plan.

September 15, 2004: After a trial brought by 300 districts --both rich and poor -- a judge rules the education funding system unconstitutional and inefficient. He orders the state to halt school spending in October 2005 if problems aren't fixed. Following the judge's written ruling in late November, the state appeals to the Texas Supreme Court.

January 11, 2005: Legislature convenes in regular session and Perry declares education funding an emergency. Lawmakers fail to pass a new system before session expires May 30.

June 18, 2005: Perry vetoes $35 billion in education spending, forcing lawmakers into 30-day special session beginning June 21.

July 6, 2005: Attorneys for hundreds of school districts tell Texas Supreme Court justices in oral arguments that the state has abdicated its obligation to educate its children. State lawyers argue that state funding meets the minimum constitutional requirements. The court does not immediately rule.

July 20, 2005: Special session ends at midnight without passage of a new plan. Perry calls lawmakers back for another 30-day special session beginning the next day.

July 26, 2005: Republicans and Democrats in the Texas House vote down its own school funding bill. House Speaker Tom Craddick blames school superintendents for persuading lawmakers to oppose the legislation.

Aug. 19, 2005: The 30-day special session ends without a school finance solution.

Nov. 22, 2005: The Texas Supreme Court rules that local property taxes for school funding amount to an unconstitutional statewide tax and gives the state until June1 to fix the system.