School finance in Texas and what it means for Round Rock ISD
Nationally, Texas ranks 49 when it comes to per-student spending. The standard allocation for educating a Texas student, which was boosted to $6,160 annually per student in 2019, has remained unchanged, even though inflation has risen by 14.5 percent. Furthermore, the school district can only receive the entire $6,160 sum for each student with perfect attendance. If a student is absent during the school year, the District’s entitlement for that student decreases, even though expenses such as teacher salaries remain constant.
The Solution
The Texas Legislature must take action by allocating more state funding and prioritizing public education. Action by the Legislature will help public schools equip Texas children with social and academic support, preparing our future leaders for tomorrow.
You can help:
- Share your opinion with your representative.
- Request action
- And stay engaged during the legislative session, February – May
Round Rock ISD has had a AAA Credit Rating From Moody’s for the last 13 years.
Our general operating budget amounts to $445.4 million, with allocations between two primary funds: the Maintenance and Operations (M&O) fund and the Interest and Sinking (I&S) fund, also known as the Debt Service fund.
Budget FAQs
What makes up a district tax rate?
A school district’s tax rate comprises Maintenance and Operations (M&O) and Debt Service (I&S). M&O taxes finance the General Operating Fund, which covers the District’s routine operating expenses, including salaries, supplies, utilities, insurance, equipment, and other costs. The Debt Service tax pays for school bonds and can only be used to repay the principal, interest, and expenses of bonds issued for particular purposes. Each year, usually in September, the Board of Trustees approves the tax rate.
What makes up a public school district budget?
What is recapture? How does it impact us?
Recapture is part of the Texas Education Code governing school funding that was enacted by the Texas Legislature. Recapture takes local tax dollars from “property rich” districts and redistributes the funds to “property poor” school districts to help fund operations. Round Rock ISD became a recapture district during the 2002-2023 school year.
This means that Round Rock ISD, and 159 other Texas public school districts, send millions of dollars in taxpayer funds back to the state every year for redistribution. These are funds that would have otherwise been used to help fund school operations and salaries in their zoned school district.
Only the Texas Legislature can reverse the increasing flow of local taxpayer dollars to the State’s budget.
How much has Round Rock ISD contributed to State recapture each school year?
2022-2023 $85,863,000
2021-2022 $61,479,569
2020-2021 $16,397,380
What are bonds? How long does it take to pay them off?
Round Rock ISD has never issued bonds with a maturity period of more than 25 years, even though the assets financed by the bonds have a longer life span. During a bond sale, multiple bonds are issued, each with a maturity period ranging from 1 to 25 years. Assets with a shorter life span, such as technology devices, are financed with bonds with shorter maturities corresponding to the asset’s useful life.
What are fund balances?
Round Rock ISD maintains an adequate fund balance to ensure smooth operations during periods of negative cash flow. Nonspendable and restricted fund balance use is limited by externally enforceable limitations like laws and regulations.
The Board of Trustees allocates committed and assigned portions of the fund balance for specific purposes such as emergencies, small capital projects, one-time items, and educational equipment, including musical instruments. The District’s Board Adopted Fiscal and Budgetary Strategy mandates a minimum unassigned fund balance of 25% of budgeted operating expenditures. Sufficient reserves are necessary to meet ongoing monthly spending because of the timing of payments received from the state of Texas and tax collections.