A Georgia law that cleared the way for a surge in new charter schools was struck down by the state's top court in a high-profile decision that will affect thousands of students and could reshape how the state's public school system is funded.

The Georgia Supreme Court's 4-3 decision on Monday overturned the Georgia Charter Schools Commission, which allowed the state to approve and fund charter schools over the objection of local school boards.

The 2008 legislation sparked a revolt by upset school districts, which filed a lawsuit a year later claiming the commission broke the law by moving millions of dollars of local tax dollars without the approval of local taxpayers.

Charter school supporters say it is designed to re-direct state money to charter schools that need the funding.

Tags: Georgia Supreme Court, charter schools, school districts, eduction