But that could change - especially with federal and state governments demanding higher achievement from schools, teachers and students without providing a higher stream of revenue.

In fact, high school students will need to pass an exit exam next year to earn a diploma. Failure could jeopardize a student's college and job prospects. And district officials worry that a parent may sue, arguing that the school shortchanged the student because lawmakers shortchanged the school at budget time.

"That opens the door for litigation, just like No Child Left Behind opens the door," said Jennifer Park, a senior research associate for Education Week's "Quality Counts 2005" report released Wednesday. "You're talking about really high standards. Are [states] giving enough money to ensure students meet those standards?"

A year ago, nearly 15,000 Utah high-schoolers in the class of 2006 failed at least one section of the exit exam - which covers reading, writing and math. Some passed on their second try, but results won't be released until later this month, Associate State Superintendent Christine Kearl said.

"We picked up quite a few more students this fall. We had a lot more passing in reading and writing," she said.

Regardless, the state Board of Education is asking the 2005 Legislature, which convenes Jan. 17, for an extra $10 million to cover tutoring and other services for students struggling to pass the exams.

Education Week's annual "Quality Counts" report ranks states on various criteria and examines a specific element of public education, such as special education or teacher quality.

This year, the report focuses on school financing, court cases challenging the equity and adequacy of that funding, and how clearly states can demonstrate school spending's impact on student achievement.

Utah received an A-minus - third highest in the nation, behind Hawaii and Nevada - for how equitably it funds schools. The state gets credit for ensuring that students in property-poor school districts receive the same funding as their counterparts in wealthier districts.

"That means we're really good at uniformly distributing the dissatisfaction," said Patrick Ogden, an associate state superintendent who oversees school financing. "Everyone is equally dissatisfied with how much we send out to them."

Utah has long spent less per pupil than any other state, largely because of the sheer quantity of kids. Even so, students historically have performed at or above the national average on standardized tests in reading and math, as well as college entrance exams.

But it is the students who fall short - especially at-risk youngsters from disadvantaged homes - who have prompted lawsuits in some states blaming inadequate funding. In other states, organized coalitions and school districts have gone to court over school-funding levels.

And more often than not, they are winning, said R. Craig Wood, a professor of education finance at the University of Florida, who has studied education funding for 25 years. He frequently testifies on behalf of states being sued for inadequate funding.

"These people are coming in the door with arguments that are very difficult to refute," he said. "We used to look at the disparity between rich and poor districts and say, by definition, the system is inequitable. In the last three, four, five years, the argument has been much more significantly intangible . . . and plaintiffs are finding very receptive courts."

Just this week, the Kansas Supreme Court ordered that state's Legislature not only to increase public-school funding but also to base the boost on students' needs, not "political or other factors not relevant to education," according to The Associated Press. Litigation now tends to challenge provisions in state constitutions that quantify, though vaguely, the level of education to be provided. Descriptors range from "basic" to "thorough" to "sound."

The Utah Constitution originally pledged a "uniform system of public schools," but lawmakers amended it in 1986 to "provide for the establishment and maintenance of the state's education systems."

While the change may have muddied grounds for an adequacy lawsuit, it didn't necessarily eliminate them. The high school exit exam could provide traction for a challenge.

"When states set down [new] requirements, and the school districts say, 'You've got to give us more money to meet your standards,' there is some logic there," Wood said. ''I've always said to legislatures, 'Why are you painting yourself into a corner?' ''

rlynn@sltrib.com

How Utah fared:

From Education Week's "Quality Counts 2005" report, the trade publication's annual state-by-state, glance-at- education indicator:

* Standards and accountability: C-plus for having clear standards for English, math and science at all grade levels, but not-so-clear standards for middle-school social studies. The state also takes a hit for relying on multiple-choice standardized tests to measure student achievement.

* Efforts to improve teacher quality: D-plus for not tracking the quality of teacher training and not requiring teachers, before entering the classroom, to pass tests in the subjects they teach. Schools say the report does not reflect progress made on both fronts in the last year.

* School climate: C-plus for large class sizes and a weak charter-school law, as defined by the Center for Education Reform. Utah gets positive marks, however, for its open-enrollment policy and extensive report cards for schools.

* Resource equity: A-minus for ensuring that students in areas with low property values receive the same, or more, funding than students in wealthy areas.