School budgets, typically a complex mess under the best of circumstances, are in chaos this year because of uncertainty and confusion around state and federal funding.

State officials still don't know precisely how much education funding Texas will receive from the federal stimulus package. Without that information, school districts don't know how much is available for raises and other expenses, say school finance directors and other experts.

A few districts, including Dallas, Richardson and Allen, already have passed budgets accounting for the uncertainty. But for most, who face a Wednesday deadline or later to approve their budgets, the numbers are a moving target.

"It's possible this thing could all blow up," said Richard Koonce, Mesquite's assistant superintendent for business services.

Several scenarios could play out, according to school officials. For instance, districts could receive millions but be required to use half of it for teacher and professional staff raises.

Or the money could come with few strings or be designated for specific programs.

School finance officials, meanwhile, must account for that money and where it goes in the 2009-10 budget that school boards must pass.

"Normally this is pretty easy," said Mark Tarpley, the Allen district's assistant superintendent for finance. "Then the federal government put a few wrinkles in it."

Much of the concern over budgets centers on whether Texas will receive $1.9 billion from federal stimulus education funds.

One of the worries is that the U.S. Department of Education won't approve the state's plan for the funds and will withhold them, at least temporarily.

Texas Democrats in Washington have protested the state's handling of the process. The Legislature put money in the rainy day fund and then decided to use federal stimulus funds for education. The Democrats argue that federal funds were meant to keep states from laying off teachers and cutting programs.

Two weeks ago, U.S. Secretary of Education Arne Duncan warned Pennsylvania that it could have funds withheld over their plan, which is similar to the Texas plan.

The political struggle concerns school officials.

Texas "completely funded the education budget with stimulus dollars," said Brock Gregg, director of governmental relations for the Association of Texas Professional Educators, a teacher organization. "If the stimulus had not arrived, the budget wouldn't have had any new money."

Even though the Texas law appears to conflict with federal guidelines, Gregg said his organization believes the state will get the money.

Without the federal funds, there is no state money for raises. Districts would have to pay for them out of their own pockets, and those pockets are empty. Many districts face deficits and are dipping into reserves.

Richardson and Allen have approved raises, and officials there say they will take money from district funds if state funds fall through. Other districts have approved the raises without saying exactly what will happen if the federal money does not come.

Dallas, which has no funds for raises, passed its budget Thursday without them, waiting to see if the money comes through.

Rene Barajas, the Garland school district's assistant superintendent for business operations, said the funding uncertainty is like having the "sword of Damocles hanging over us, and we know it could fall."

Garland has time; its fiscal year doesn't start until Sept. 1, and budget meetings are just beginning. The fiscal year for many districts begins Wednesday.

Assuming the federal funds are approved and money is sent to districts, there are still a lot of questions.

The state funding bill, HB3646, says districts will receive $120 for each weighted student in daily attendance – education-speak for the formula that takes into account different student needs.

Of that, half must go to raises for teachers, librarians, counselors, nurses and speech pathologists, and the rest can be used as districts see fit.

Legally, some question whether the state can tell the districts how to use the money.

"There is a belief among some of the finer legal minds that the state has no authority to tell districts how to spend federal money," Garland Superintendent Curtis Culwell told his school board this month.

If the Education Department rejects the state's application for stimulus funds, the money could be distributed using the federal Title I formula based on the needs of schools with high numbers of economically disadvantaged students. Or districts might be able to apply directly to the federal government, getting money with even fewer strings attached.

Culwell said he's seen estimates showing Garland could receive $8 million to more than $16 million, depending on the plan finally approved.

District officials have followed the debate on Web sites and at education organization meetings. Many said they are still confused, and statewide education organizations have put out multiple explanations of the process that don't all agree.

The Texas Association of School Business Officials met in Colleyville this month, normally a quiet event. But a session with a Texas Education Agency official there to help explain the law was downright rowdy, some said.

"I didn't get yelled at. It was very, what's the word, intense," said Rita Chase, the TEA speaker. "There's a lot of frustration."

Texas school districts are in budget season amid uncertainties over funding. Here are highlights from districts that already have approved their budgets:

Allen

Dallas

Frisco

McKinney

Plano

The approved $450 billion budget includes a 2 percent to 3 percent raise for teachers and some others.

Richardson

The approved $318 million budget includes estimated 2 percent to 3 percent raises for teachers and some other professional personnel.