JUDGMENT MODIFIED, AFFIRMED IN PART, REVERSED IN PART AND REMANDED, opinion by Justice Hecht:
In this case challenging the Texas school finance law, the trial court held that the state system violated the constitutional section prohibiting a state property tax and that it violated constitutional requirements that the Legislature provide for adequate and suitable school financing. The trial court also held that the Legislature’s provision for school maintenance and operations did not violate the constitutional "efficiency" requirement, but that school facilities financing did.
The Supreme Court HOLDS that local ad valorem taxes capped at $1.50 pr $100 valuation constitute a state property tax prohibited by constitution article VIII, section 1-e, but that public school financing does not yet violate the "general diffusion of knowledge" mandate under any of the three article VII, section 1 requirements. The Court extends the trial court’s injunction against further financing Texas public schools to June 1.