• Overview

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


    school funding

    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 EMS ISD is: $1.54 per $100 of property value

    $1.17 M & O


    $.3700 I & S


    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.

    As a result, funding was reduced for EMS ISD by 8.5 million in the 2011-2012 school year and 2.5 million for 2012-2013. We are receiving $371 less for each student in 2012-2013 than we received in the 2005-2006 school year.

    If current law is not changed, we will receive no increases in funding for the next four years and in the 2017-2018 school year we will lose another 13 million. This decrease is happening at the same time we are projected to gain approximately 500 students per year and the cost of operating our schools continues to rise.

    Want to Learn More?

    School Finance 101
    This document is written by TEA, the Texas Education Agency.

    Misconceptions in School Finance
    Written by
    Moak Casey & Associates, Texas school finance and accountability experts, setting the record straight on teacher ratios and other staffing misconceptions.

    Texas School Finance Plain and Simple
    Click the link to view this video on YouTube.
    This video, created by Arlington ISD, gives a general overview of how Texas school finance works.

    Moak Casey News Updates
    Moak Casey & Associates are Texas school finance and accountability experts and advise school districts around the state. Visit their website for the latest in legislative updates as well as school finance publications.