Texas School Finance:
It's Complicated
“A general diffusion of knowledge being essential to the preservation of the liberties and rights of the people, it shall be the duty of the Legislature of the State to establish and make suitable provision for the support and maintenance of an efficient system of public free schools.”
– The Texas Constitution
The simple truth is, public school finance is complicated.
But just because something is hard, doesn’t mean it isn’t worthwhile. Understanding what’s happening in Texas school finance is foundational to understanding how Rockwall ISD manages its local budget.
Breaking Down Complex Facts
Public schools rely on state funding and local tax collections to provide students with the programs and services that prepare them for life in the workforce. However, Texas state funding has not kept pace with double-digit inflationary increases.
The fact is, the Basic Student Allotment – which is state funding per student – has only increased by $55 since 2019. In order to keep pace with inflation, it would need to be increased by approximately $1,500.
In fact, as of the most recently audited fiscal year, only 35.7% of the district’s funding comes from the state. Local taxpayers cover the bulk of the cost to educate Rockwall ISD students.
State Portion of RISD Revenue Down
The breakdown of the total of K-12 public education funding between local taxpayers and the state has changed dramatically.
Over the past 10 years, the state contribution of the overall education funding for Rockwall ISD has fluctuated considerably.
Three Main Funding Sources
Texas public schools get their funding from three main sources:
Local Funding
63%
The Rockwall ISD School Board sets the local property tax rate each year once the State determines the Maximum Compressed Rate (MCR) allowed, while the Rockwall Central Appraisal District determines the market value of homes and business property within the county or district. The primary source of local revenue for education is tax collections.
RISD receives nearly 60% of its revenue for the general operating budget from local tax collections. Another 3% comes from ticket sales, facility rental and other smaller sources of local revenue. For the 2025-26 adopted budget, local funding sources were expected to reach a little more than $121.3 million.
State Funding
36%
Federal Funding
1%
Federal funding for school districts in Texas varies from district to district based on federal grants and formulas which have potential to change.
In RISD, federal funds equate to less than 1% of the overall operating budget.
In recent years, federal funding for Rockwall ISD has decreased significantly due to reductions in federal programs such as Title 1 and Special Education programs like school health related services (SHARS).