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School Finance 101
Understanding School Finance
Understanding the Funding, Allocation, and Impact of the School Funding Election
How are schools funded?
Public schools in the state of Texas are funded from three main sources:
Local Property Taxes:
Homeowners pay 72% and businesses pay 14% of the property taxes, which together make up 86% of Marble Falls ISD's operating budget.
State Funds:
The state provides about 9% of the budget, but this amount is shrinking as property values in the district rise.
Federal Funds:
Federal funds cover specific reimbursements and account for just 5% of the budget.
Here you can see the breakdown of funds for Marble Falls ISD.
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86%
Local Property Tax
9%
State Funding
5%
Federal Funding
School Taxes by the Glass
Local property taxes fill the glass first, and the state fills in any space that is left.
In an area like Marble Falls ISD where home values are increasing, even when the tax rate stays the same or is lowered, homeowners will likely see an increase in the total amount of taxes owed due to the higher property values.
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MFISD
PROPERTY
TAX
MFISD
PROPERTY
TAX
TEXAS
STATE AID
TEXAS
STATE AID
More
State Aid
Less
State Aid
Lower
Property
Tax Revenue
Higher
Property
Tax Revenue
*This creates a relationship between local and state funds where when local tax collections increase, state funds to a school district decrease.
The general fund, derived from the M&O tax rate, covers the district’s operating budget, supporting daily operations, and is divided into the following main areas:
Salaries & Benefits:
83%, is dedicated to salaries & benefits for educators and staff members.
Campuses & Departments:
The remaining 17% is allocated to campuses & departments, supporting various operational needs across schools and administrative units within the district.
How is the money spent?
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Salaries and Benefits
83%
17%
Campus/Dept.
Budget
Breakdown
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A breakdown of the district’s budget is represented in the graph below. A large portion of each dollar is spent in the classroom on instructional costs.
When looking for cost reductions, it is difficult to make a significant reduction without impacting the classroom.
Current Tax Rate
The School Funding Election specifically seeks voter approval to increase the M&O tax rate, allowing the district to raise more revenue for operations without affecting the I&S tax rate.
The total tax rate applies to each $100 of your property’s assessed value, meaning the combined M&O and I&S tax rates are multiplied by your property value (per $100) to determine your annual property tax contribution to the school district.
MFISD CURRENT M&O TAX RATE
$0.67
MFISD CURRENT I&S TAX RATE
$0.22
=
+
$0.89
TOTAL ISD
TAX RATE
MFISD Tax Rate VS Surrounding Rates
Marble Falls ISD Tax Rates
Marble Falls ISD's tax rate has been reduced by 30% over the last 10 years, reflecting the district's commitment to managing taxpayer resources efficiently while continuing to support quality education.
If Approved...
Increase in M&O Tax Rate of 2.67-cent per $100 of taxable home value.
MFISD PROPOSED M&O TAX RATE
$0.69
MFISD CURRENT I&S TAX RATE
$0.22
=
+
$0.91
TOTAL PROPOSED ISD TAX RATE
With the proposed
School Funding Election...
Marble Falls ISD will receive
$2,200,000