School Funding Explained
School Funding Explained
Where Funding Comes From. How It Supports Students.
Texas school finance can be complicated. East Central ISD is committed to helping our community understand where school funding comes from, how the state determines funding and why enrollment, attendance, student needs and rising costs all matter.
Doing More With Less
ECISD carefully manages local, state and federal funds to support approximately 12,000 students and the employees, programs and services they rely on every day.
Breaking Down the Revenue
Where does ECISD’s operating revenue come from?
East Central ISD receives funding from local, state and federal sources. These funds support the district’s general operating budget, which pays for the daily costs of educating and serving students.
51%
Local Funding
Local revenue primarily comes from property taxes collected within East Central ISD, along with other local sources.
48%
State Funding
State funding is determined through formulas established by the Texas Legislature.
1%
Federal Funding
Federal funds generally support specific programs, services and student populations.
Who determines property values?
The East Central ISD Board of Trustees adopts the district’s tax rate each year. The district does not determine the market value of homes or businesses. Property values are established by the Bexar County Appraisal District.
Property Values and School Funding
Why rising property values do not automatically mean more funding.
It may seem that when property values increase, the school district should receive significantly more money. Under the Texas school finance system, however, higher local property-tax collections generally reduce the amount of funding the state contributes.
Property values increase The taxable value of homes and businesses rises.
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Local tax collections increase A larger share of the district’s funding comes from local taxes.
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State funding decreases The state generally contributes less toward the district’s calculated entitlement.
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Funding remains formula-driven Higher property values do not automatically create an unrestricted financial windfall.
The size of the funding “bucket” is set by state law.
School districts receive funding based on formulas established by the Texas Legislature. Local property taxes are used first to fund the district’s calculated entitlement. The state then provides funding to help fill the remaining gap. When local collections rise, the state’s contribution generally falls.
Enrollment and Attendance
ECISD plans for enrollment but is funded largely through attendance.
One of the challenges in Texas school finance is that districts must prepare to serve every enrolled student, but state funding is significantly affected by how many students attend school each day.
Planning for Enrollment
East Central ISD works with demographic experts to estimate how many students will enroll in the future.
The district must provide enough classrooms, teachers, support staff, desks, instructional materials, transportation and other services for the number of students expected to enroll.
Many of these expenses must be planned and paid even when a student is absent on a particular day.
Funding Through Attendance
Texas is one of a small number of states that bases a significant part of public-school funding on student attendance.
Average Daily Attendance, commonly called ADA, measures how many students are present during the school year and plays a major role in determining state funding.
When students are absent, they lose valuable instructional time and the district may also lose funding.
Every Day Counts
Good attendance supports learning and school funding.
Regular attendance gives students the best opportunity to succeed academically. It also helps ensure ECISD receives the funding needed to provide teachers, programs, transportation and student services.
What Affects School Funding?
Several factors determine the resources available to ECISD.
Student Attendance
Average Daily Attendance plays a major role in determining the state funding ECISD receives.
Student Needs
Funding formulas provide additional weights for certain student populations and instructional needs.
Legislative Decisions
The Texas Legislature establishes the formulas and funding levels used to support public schools.
Enrollment Growth
New students require additional teachers, classrooms, transportation, supplies and support services.
Inflation
Rising costs for insurance, utilities, transportation, supplies and other services reduce the purchasing power of available funds.
State Funding Formulas
Local tax collections and state funding work together to meet the district’s calculated entitlement.
New homes do not mean more purchasing power.
A growing school district means lower state funding and higher expenses, such as additional employee pay, classrooms, transportation, instructional materials and student support.
Rising operational costs also affect how far each dollar can go. Transportation, property and health insurance, safety, utilities, supplies and other essential expenses have all become more costly.
ECISD continues identifying efficiencies while prioritizing the people, programs and services that directly support students.
School Funding in Simple Terms
East Central ISD plans for every enrolled student, receives funding based significantly on attendance and operates within formulas established by the state. When local property-tax collections rise, state funding generally decreases. Meanwhile, enrollment growth, student needs and inflation continue to affect the cost of providing an excellent education.