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How Are They Generated?

School districts receive funding from a variety of sources—federal, state, fund-raising efforts while Charter schools receive funds based on the number of students enrolled. They do not have a tax base so charters do not have local tax funds like school districts. Texas Charter Schools may not charge tuition. They may only charge fees that school districts charge.

For districts, local dollars are combined with state dollars into a pot of money called the general operating fund. These funds are the primary budget account used to run the school.

Sharing Local Tax Revenue

Certain school districts must share their local tax revenue with other school districts. If a school district is identified as property wealthy, the district has options:

  • consolidate with another district;
  • detach territory;
  • purchase average daily attendance credits from TEA;
  • educate nonresident students;
  • consolidate tax base with another district or ask the state to withhold the required amount from the state revenue to which the district is entitled. Chapter 41 of the Texas Education Code (TEC)

District Allocations

Local Education Funds are generated from local property taxes in the districts while charter schools local funds are generated from the number of students enrolled.

Did you know?

The local share of public school funding –the part funded by property taxes–has risen from 46.1% in 2010 to a projected 55.5% in 2019.

How Are The Funds Used?

Local Education Funds can be used to:

  • provide staff, services, materials, furniture, equipment, training, and any other cost needed for ALL teachers and staff.
  • To provide students with disabilities educational support in the same way and to the same extent as non-disabled students.
  • To purchase only services and items allowable under various regulations.

District Staff

  • Teachers
  • Paraprofessionals
  • Counselors
  • Nurses
  • Librarians
  • Nutrition & Food Services
  • Central Office
  • Business Office
  • Campus Administration
  • Support Staff
  • Bus Drivers & Monitors
  • Custodial/Maintenance
  • Everybody

Contracted Services

  • Teacher Training
  • Program Development/Evaluation
  • Audit Services
  • Legal Representation
  • Tas Appraisal & Collection
  • Utilities
  • Maintenance & Repair
  • Specialized Services Not Available

Materials, Supplies, and Equipment

  • Materials, supplies, and equipment for ALL students.

  • Routine classroom and office materials: desks, books, computers, computer programs for ALL students and staff

  • Musical instruments, gym equipment, career and technology education

  • Everything needed to teach the many subjects, grade levels and interests of the students.


  • Drivers
  • Monitors
  • Mechanics
  • Routes

Other Operating Expenses

Funds support the classroom indirectly as well by paying for student and staff travel, professional development, insurance, election costs, and other miscellaneous costs related to running a school.

Debt Service

Schools obtain bonds to pay for large capital outlay items. Schools must pay interest on the money borrowed.

Capital Outlay

Schools need to purchase and improve land; purchase, construct or improve buildings; and purchase vehicles, library books and media.

Want to Know More?

Dig Deeper and learn more about the special education process in Texas using the following resources:

Charter Schools

A charter school is a type of public school. The Texas Legislature authorized the establishment of charter schools in 1995. Some of the first charters have been in operation since Fall 1996.


Charter School Funding

Charter schools receive state funds based on the average daily attendance of students.


Quick Reference

The Special Education quick reference guide covers local, state, and federal revenue sources, budgeting, allowable expenditures, and fiscal compliance.


Did you know?

Schools must follow extensive specific regulations when accounting for their funds.

For example, the Texas Education Agency (TEA) requires schools districts to maintain proper budgeting and financial accounting and reporting systems. The Financial Accountability System Resource Guide (FASRG) outlines these require-ments. TEA audits schools and service centers to ensure compliance.

Did you know?

Charters may apply for Start-Up Grants

Charter schools may apply one time for federal funds to support program planning and funds to get a charter started.

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