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School funding comes from three sources: state, federal and local funds.

The local tax dollars are split into two different parts:

Maintenance and Operations (M & O)

Interest and Sinking (I & S)

The M&O funding accounts for the day-to-day operations of the district including payroll. The I&S side funds building and capital outlay expenditures. All of our new construction of facilities are funded from the I&S side of the budget.

The total tax rate for ²ÝÁñÉçÇø is: $1.54 per $100 of property value

$1.17 M & O

+

$.3700 I & S

$1.5400

Example: A $100,000 house has a school tax bill of $1,540.00 per year.

Current Situation

In 2006 the Texas legislature approved House Bill 1 (HB1) in an attempt to lower property taxes and equalize state funding for all school districts. The bill required each school district to lower their tax rate by one third and in turn, the state increased its aid to each district make up the difference in funding.

The result of HB1 is that it capped the amount of total revenue a district could receive. Basically, as property values go up and generate more revenue for the district, the state contributes less, keeping our revenue static. Our total revenue will never be higher than the amount of funding our district received in 2006. We are paying today's bills based upon yesterday's revenue. The system does not work because it has limited capacity.