How Public School Taxes Work

  • Public school taxes involve two figures, which divide the school district budget into two “buckets.”

    The first bucket is the Maintenance and Operations tax (M&O), which funds daily costs and recurring or consumable expenditures, such as teacher and staff salaries, supplies, food and utilities. In fact, more than 80% of the District’s M&O budget goes to teacher and staff salaries.

    M & O

    The second bucket is the Interest and Sinking Fund (I&S), also known as Debt Service, that is used to repay debt for capital improvements approved by voters through bond elections. Proceeds from a bond issue can be used for the construction and renovation of facilities, the acquisition of land, and the purchase of capital items such as equipment, technology and transportation. By law, I&S funds cannot be used to pay M&O expenses, which means that voter-approved bonds cannot be used to increase teacher salaries or pay rising costs for utilities and services.

    I & S

Bond Tax Impact

  • The maximum tax impact anticipated for this bond is a 32 cent increase. That equates to roughly an additional $26 a month, or $320 annually, on a home valued at $100,000. School district taxes are frozen for residents who are 65 and older and have filed for an Over 65 Homestead Exemption. Their taxes will not increase as a result of a school bond election. Homestead exemptions are also available for individuals with disabilities and qualifying veterans/surviving spouses. Click here for more information about property tax exemptions.