Why can we pay for new schools, additions and upgrades of current facilities out of the districts annual maintenance and operating budget?
Bond money allows payments to be spread out over a period of years just like a home mortgage. • C-FB ISD like other districts has a maintenance and operating (M&0) tax rate and a debt service tax rate. The maintenance and operating tax rate funds annual operating expenses (salaries, utilities, etc.) while the debt service taxes pay off school bonds. • As a Chapter 41 school district, C-FB ISD is required to send money to the state through the “Robin Hood” school finance plan. The annual operating expenses are funded by the M&O rate, which are limited and subject to recapture under “Robin Hood.” C-FB ISD sends 30 cents out of every dollar of its maintenance and operating budget to the state through the “Robin Hood” school finance plan. • Tax dollars collected for debt service are excluded from the “Robin Hood” provisions; that means that every dollar spent through the debt service fund remains totally in the district. If the district paid for capital improvement projects out of the regu
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