By Tami Luhby @CNNMoney
NEW YORK (CNNMoney) -- Don't tell school districts that the economy is picking up.
Many are still too busy figuring out how they are going to teach their students with diminished resources.
More than eight in 10 districts say they are inadequately funded, and more than half anticipate a decrease in state and local revenues for the coming school year, according to a recent survey from the American Association of School Administrators.
Even in districts where state aid is stabilizing, local funding is shrinking or costs are rising faster than revenues. Many are only now feeling the effects of the housing bust as towns lower property assessments, which affects the property tax revenues that many schools depend on.