Plaintiffs in an Indiana school funding lawsuit, which was put on hold pending the passage of the state's fiscal 1994-95 budget, intend to decide by next week whether to resume the legal action, according to their attorney.

The 40 school districts that filed the lawsuit agreed to stop legal proceedings last August afterGov. Evan Bayh promised that school financing inequities would be addressed by the legislature, according to Marilyn Holscher, an attorney for the districts. The legislature passed the budget June 30, one day before the start of Indiana's 1994-95 biennium.

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