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Impact of School Funding System on Klein ISD

My home value has risen so I’m paying more school taxes. Doesn’t that mean Klein ISD has more funds?
No. Increases in Klein ISD home values causes a homeowner’s school taxes to rise but the increase does not impact the local school district as one might expect. As local tax funding increases, State funding decreases. The State then has the discretion to use the funds they were sending to fund public education in other parts of the State budget. In fact, the State built their last budget on an almost 14% increase in local property values (see section on State Funding, question 4)

The chart below illustrates the proportional amount of revenue Klein ISD received from local, State and federal funds since 2011. The local percentage has increased to 51% while the State funding amount dropped to 48%.

Revenues by Source - Local, State & Federal
The State decreases the amount of funding received if property values rise and there is not an automatic mechanism built into the State Funding Formula for inflation. What does this mean for Klein ISD when the State did not budget for inflation during the 2017 biennium session?
In 2006, the State establish a Target Revenue number based on each district’s per pupil spending that year. The State’s established Target Revenue can only be adjusted through legislative action or local approval. The State sends districts the difference between what they collect locally and the Target Revenue amount. Even though the M&O tax rate of $1.04 has not increased, the chart below shows how local taxpayers are paying an increase in the cost per student based on increases in property values, due to the State decreasing its share. This causes Target Revenue to stay about the same.

Target Revenue Chart 2015-2018
The second chart shows the decrease in dollars and cents over the same time frame. Klein ISD per student funding has decreased $12.3 million since 2015. Klein ISD funds things like cost-of-living increases for our employees, and rising costs related to fuel, utilities, supplies, and materials with less money.
Target Revenue Chart with additional information.


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