State litigation involving unconstitutional school financing systems are described in this document, which focuses on efforts in Texas to reform the financing of public education. Since its school finance system was declared unconstitutional in 1987, two subsequent proposals have been struck down by the Texas Supreme Court for the following reasons: (1) the proposals relied too heavily on local property taxes; and (2) a county education district plan essentially created a statewide property tax, which was against Texas law. The efforts of state lawmakers in Kentucky and New Jersey are also described. A conclusion is that states' school financing conflicts are far from over. In the majority of school finance litigation cases, the common thread is the focus on equitable resources for all schools. Additionally, courts have been asked to determine the basis of an adequate system of financing public education. Two maps that depict the legal status of states' education finance systems are included. (Contains 16 references.) (LMI)