This week, the Ohio Supreme Court affirmed its previous DeRolph ruling that the state's school-funding system is unconstitutional - then dropped the case without ordering remedies or imposing timelines. What happens now? Enquirer editorial writer Linda Cagnetti looks at some of the "solution" scenarios you may hear in the new year:

Shift, raise taxes

Since local property taxes produce spending inequity between rich and poor districts, switch to statewide sales and/or income taxes for schools. Raise one or both of these taxes and lower property taxes.

This echoes the "Michigan solution." In 1994, voters agreed to a 50 percent sales tax increase to reduce the need for recurring local tax levies to run schools. It narrowed spending differences statewide, gave more money to poor districts, guaranteed a higher state minimum per pupil and reduced local property taxes. State taxes now provides 80 percent of school funding in Michigan, up from 68 percent before. Overall funding for Michigan public schools has increased by more than 50 percent, more than double the rate of inflation.

In exchange, sales taxes (and other state taxes and fees) are much higher and local control is reduced. Dependent on the state for the bulk of their funding and without the ability to ask local voters for extra money (except for buildings), schools are subject almost entirely to the state's direction and control. Plus, if schools lose enrollments, they lose money. Consequently, Michigan educators, and some in Kentucky, which has a similar system, now want lawmakers to raise locals taxing power.

Many lawmakers favor property taxes because sales and income taxes are more subject to economic ups and downs. Ohio voters rejected a sales tax increase/property tax reduction in 1997. Tax-hike proponents want the General Assembly, not voters, to make it happen.

Gambling

Whenever a state needs lots of easy money fast nowadays, the talk turns to casino gambling.

The latest proposal in Ohio would allow video slot machines at all racetracks. The state's share from these privately-owned businesses is estimated to be at least $500 million a year.

Advocates claim the money could ease Ohio's school funding needs and the looming budget deficit.

An attempt to quietly legalize video slots failed in the waning hours of the last General Assembly, but odds are good it'll be back early next year.

Gambling advocates say it's stupid not to take the easy money, plus keep Ohio racetracks competitive with encroaching casinos in other states. . For some Republicans, it's easier than raising taxes.

But it's not smarter, say Ohioans who oppose the expansion of casino gambling. Aside from the corruption and moral arguments, they believe it's bad public policy for schools or state government to become dependent on the gambling industry for money.

Raising taxes is unpopular with the Republican-controlled Assembly. Besides voter unpopularity, they know big hikes can wreck an already sluggish state economy. But the school funding dilemma, which has fed a looming budget deficit, makes the gambling "rescue" more seductive than ever.

Do nothing more

It's likely that the next Ohio General Assembly will do nothing more about the DeRolph rulings than they're doing now.

The Republican-controlled Assembly and Gov. Bob Taft say the system of property taxes is solid, and that the state has added billions over the past years to increase the state's share of funding. It now averages about 50 percent. The minimum guarantee is approaching $5,000 per pupil. Poor and urban districts get extra money. And, the lawsuit has prompted the state to spend billions of extra dollars on buildings.

Many legislators believe they've done enough without dismantling the whole tax system for another. The dollars the lawsuit demands are at least a billion more a year than now.

Gov. Bob Taft and departing Senate President Dick Finan say a $1.4 billion funding fix passed over a year ago should be considered constitutional until a future court says otherwise. Another $300 million increase over the next two years will go to property poor school districts.

This week's DeRolph IV ruling assumes lawmakers will respond to the court majority's call for a "complete and systematic overhaul of the system." But the court did not retain jurisdiction in the case and one of the majority, Justice Andrew Douglas, retires this month.

"It's done," said Mr. Finan. "I say we have done the best we can, and if we continue on our path, we'll reach success."

Amendment

Ask voters to alter the Ohio Constitution to make public school funding an untouchable, permanent entitlement, with mandated spending amounts and automatic increases.

The money comes off the top of all state spending, in good or bad times, and is off limits to legislative decision-making.

The General Assembly's only job then would be to see that the money is provided, most likely through a variety of higher taxes.

On the downside, it would eat a lion-sized chunk of the state budget, leaving much less to cover all other state spending. It leaves elected legislators, and taxpayers, no control or say in the matter.

This affects all state spending priorities and taxation policies.

If Ohio goes the amendment route, Cincinnati Rep. William Sykes suggested voters have two, clear, precise ballot issues.

One issue would ask voters if they are "willing to pay a multibillion dollar increase in sales and income taxes (use the price tag the lawsuit plaintiffs say is necessary) and make that funding permanent, yes or no."

The second "yes or no" vote would add words to the constitution specifying that the General Assembly (not the courts) has "sole and unreviewable" responsibility for public education funding.

More lawsuits

Is Ohio's 11-year-old DeRolph lawsuit over or not? Last week's ruling said the school funding system was unconstitutional, but retained no jurisdiction over the case. Some say the legal war is over. Others say it's not.

Bill Phillis, director of the school coalition that brought the lawsuit, said his group has not ruled out filing a motion asking justices to declare the General Assembly in contempt of its latest order if lawmakers do nothing about it. He added, "We're optimistic that our system of government will eventually work."

Would a contempt charge send lawmakers to jail or fine them? How are other states handling similar situations legally?

According to the latest count of the National Center for Education Statistics, several states have rulings in similar lawsuits, but still "undetermined" outcomes. Some states (like Kentucky) that changed their funding system now face a second round of threats to "correct" unintended outcomes from the first ones.

Almost all states have had or now have similar school finance litigation, with varying verdicts. The early wave of lawsuits focused on equitable spending among rich and poor districts. The current wave includes equitable, plus what educators deem "adequate" spending. Defining what's an "adequate" or ideal public education is the core of the standards movement underway nationwide. State standards intend to define the adequate or ideal education; then we can cost out what it takes to pay for it per pupil. School finance has become a booming legal industry. Looks like it has a long future.