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Multiple Choice

What are major sources of revenue for school districts?

Local property taxes, state funding, and federal grants are the main ways school districts pay for operations. Local property taxes are the backbone of a district’s budget because they fund day-to-day needs like salaries, maintenance, and supplies through the levy voters approve. State funding helps bridge gaps and aims for more equitable distribution by formula, taking into account district enrollment and student needs. Federal grants provide money for targeted programs such as special education and assistive services, but come with specific rules and purposes. Fundraising events and lottery proceeds can add some money, but they’re not stable, predictable sources for ongoing operations. Tuition from non-district students isn’t a typical revenue stream for public K–12 districts, since resident students are financed through local, state, and federal funds rather than tuition.

Local property taxes, state funding, and federal grants are the main ways school districts pay for operations. Local property taxes are the backbone of a district’s budget because they fund day-to-day needs like salaries, maintenance, and supplies through the levy voters approve. State funding helps bridge gaps and aims for more equitable distribution by formula, taking into account district enrollment and student needs. Federal grants provide money for targeted programs such as special education and assistive services, but come with specific rules and purposes.

Fundraising events and lottery proceeds can add some money, but they’re not stable, predictable sources for ongoing operations. Tuition from non-district students isn’t a typical revenue stream for public K–12 districts, since resident students are financed through local, state, and federal funds rather than tuition.