School Finance

A school district’s tax rate is comprised of two components: the Maintenance & Operations tax (M&O) and the Interest & Sinking tax (I&S). Bond sales only affect the I&S rate.

M&0

Maintenance and Operation (M&O) funds are primarily used for the ongoing operational needs of the district. These funds ensure that the schools can function on a day-to-day basis. They include:

  • Salaries

  • Utilities

  • Supplies

I&S

Interest and Sinking (I&S) funds are used for paying off debt incurred by the school district, typically for:

  • Construction of new school buildings

  • Renovation or major repairs of existing facilities

  • Purchase of large equipment or other capital investments

If approved, the bond election would increase the I&S tax rate.