Budget problems are mounting for many Texas school districts, and this next year may be especially tough.  This year Texas is projecting billions of dollars in deficit, and schools will certainly be part of that shortage.

Right now, Texas schools are financed with a mix of local property taxes, a state business tax, and cigarette taxes.

State representative John Smithee says he would refine that system to get schools more money, but until then if cuts must be done he wants cuts at the top.

"For some reason, whenever any government amenity focuses on tough budget times they always want to focus on the bottom, where the services are directed to the tax payer instead of at the upper level where theses services are administered. So I would just plead focus on the top and hold off as long as they can until we go to Austin," said Representative John Smithee, (R) Amarillo.

We also spoke with AISD Superintendent Rod Schroder, he says, "The inequity in the current funding system hurts property poor districts like Amarillo ISD. We rely heavily on state money to operate, so a projected $12 billion shortfall is concerning for AISD as well as many other school districts across the state."

Smithee says the problems will start to surface within the next two years, but the next legislative session isn't until 2011.