School finance in Texas and what it means for Round Rock ISD
As the only school district in Texas to earn a AAA Credit Rating by both Moody’s and Fitch, Round Rock ISD currently operates on a $445.4 million general operating budget.
1) maintenance and operations, also called the M&O fund
2) interest and sinking, also called the I&S or debt service fund
Money in the maintenance and operations fund is used for daily operations (i.e. salaries, supplies, utilities, etc.).
Money in the interest and sinking fund is used to repay bonded indebtedness. School districts hold school bond elections to obtain authorization from local voters to sell bonds for capital projects. Taxes are collected for the repayment of the bonded indebtedness. Monies from the bond sale are used for construction and capital improvements to facilities and to buy furniture, equipment and/or to purchase land.
The money collected on the I&S side of the ledger cannot be used for maintenance and operations costs. Simply put, you cannot use I&S funds to pay salaries, which account for more the 80 percent of the District’s budget.
Have a budget question or interested in hearing a budget presentation at your school or community group? Contact us.
Reversing the increasing flow of local taxpayer dollars to the state’s budget rests with the Texas Legislature. It requires additional funds from the state and a commitment to higher prioritization of public education in order to ensure an educated workforce for the future of Texas.
What can you do?
- Contact your legislator. Share your frustration with the current system. Find out who your representative is.
- Demand action
- Stay engaged during legislative sessions
Overall, the results show that Round Rock ISD is more richly staffed than many of our peer districts, though the report acknowledged intentional programmatic differences that may require different staffing levels. The District will fully evaluate all recommendations. In the meantime, we are soliciting suggestions from District staff on potential efficiencies in the District.
Have suggestions? Contact us.
What makes up a district tax rate?
What makes up a district budget?
What are bonds? How long does it take to pay them off?
What are fund balances?
Can the District use fund balances as a “rainy day” fund?
Can a school board use the fund balance in any way they deem fit?
Round Rock ISD Board of Trustees approve 2020-2021 budget
Bond Sales Teaching Moment
Round Rock ISD keeps AAA bond ratings from Moody’s and Fitch
Round Rock ISD Trustees approve 2019-2020 tax rate, recognize the District for superior financial management rating
Round Rock ISD maintains AAA bond ratings from Moody’s and Fitch
Kenneth Adix Named Round Rock ISD Chief Financial Officer
VIDEO: Round Rock ISD: Tax Rate Impact
Round Rock ISD Trustees approve 2018-2019 tax rate, recognizes the District for superior performance
Round Rock ISD Board adopts 2018-2019 budget
Superintendent names Ramiro Flores Interim Chief Financial Officer
Round Rock ISD financial services awarded by GFOA for financial reporting
Texas School Finance: State’s Recapture Plan Puts Pressure on Round Rock ISD Budget
RRISD Trustees approve 17-18 tax rate, recognizes business office for superior performance
RRISD Board adopts 2017-2018 budget
Board Briefs: Trustees receive District debt report, award Bond 2014 bids
RRISD earns GFOA 'Certificate of Achievement'
RRISD Purchasing receives TASBO Award of Merit
Board saves millions with tax rate approval;District earns Superior Achievement
RRISD earns AAA bond rating by Fitch, Moody’s
RRISD earns 4.5 rating in state financial study