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Money Matters

Graphic with Copperas Cove ISD logo, Bulldawg logo, piggy bank, coin. Money Matters.

What is Money Matters?

Copperas Cove ISD has launched an effort to educate the community on the complex Texas public school finance system. In this effort, we will dive into where the money truly comes from, what restrictions are placed on it by the State of Texas, what it truly goes to and the challenges which naturally come with managing the finances that support more than 8,000 students and more than 1,400 staff members.

 
Read Full Video Transcript: Welcome to Central Texas Innovation Academy

Welcome to Central Texas Innovation Academy (CTIA), a tuition-free Texas virtual school serving eligible students in grades 3 through 12. CTIA combines the flexibility of online learning with access to certified Texas teachers, dual credit opportunities, career and technical education (CTE) pathways, and extracurricular activities.

We understand that a traditional classroom setting is not the best fit for every student. CTIA provides families with a flexible learning environment where students can study from home while remaining connected to a supportive public school community. Key highlights of the program include:

  • Certified Texas Teachers: Direct instruction, feedback, and support from state-certified educators experienced in virtual learning environments.
  • TEKS-Aligned Curriculum: Complete Texas public school education adhering to Texas Education Agency standards to ensure college, career, and military readiness.
  • College & CTE Pathways: Access to Dual Credit and Early College programs through higher education partners (Central Texas College, Lamar State, Coastal Bend) alongside 45+ Career and Technical Education pathways.
  • Hybrid Education Options: Students can take online academic courses through CTIA while participating in person for Fine Arts, CTE hands-on training, and Athletics at SC Lee Junior High or Copperas Cove High School.

Where does the funding come from in Copperas Cove ISD?

Illustration of a bucket labeled with funding sources on a blue background.CCISD receives funding from three primary sources in its general operating budget: Local property Taxes totaling approximately $15,887,929, Federal funding which totals approximately $950,000 and State funding which totals approximately $75,974,403.



How do School Taxes Function in Texas?

Graphic with CCISD Money Matters logo. Two buckets. One yellow saying M&O and one white saying I&S.Texas public schools operate with two separate property tax rates which function separately and have laws which establish how that money is collected and what it can be spent on: Maintenance & Operations (M&O) and Interest & Sinking (I&S). M&O revenue is the first funding mechanism for the district's general operating budget, before receiving and State funding, which is based largely on Average Daily Attendance. The general operating budget is what pays for staff salaries, utilities, instructional materials, general maintenance and other expenses which directly impact the district's everyday operations.

In property-wealthy districts, where their local property taxes generate more revenue than the state sets their M&O budget to receive, any local revenue received above that amount must be paid to the State through a practice known as Recapture.

Any revenue generated through the I&S tax rate has to be voted on by the community and is for the repayment of bonds which were used for capital improvements. These capital improvements include facility renovations, new construction, technology infrastructure or school buses. 

A more detailed explanation of the two Texas public school funding buckets is below.

Read Full Video Transcript: Understanding Texas School Tax Rates (M&O vs. I&S)

Narrator: Understanding how public school funding works in Texas begins with looking at how local property tax rates are structured. Texas public school districts operate using two distinct funding mechanisms, often referred to as 'two separate buckets':

  • Maintenance & Operations (M&O): This is the general operating budget for Copperas Cove ISD. M&O taxes pay for everyday operational costs including teacher and staff salaries, classroom materials, utilities, maintenance, transportation, and daily instruction. State law restricts these funds from being used for major debt repayment on new building construction.
  • Interest & Sinking (I&S): This rate is dedicated solely to paying off voter-approved bond debt. I&S funds are strictly reserved for capital projects such as new school construction, major facility renovations, technology infrastructure improvements, and purchasing school buses. Money in the I&S bucket cannot be used to pay for staff salaries or operational costs.

Through annual third-party audits and the Texas Education Agency's FIRST (Financial Integrity Rating System of Texas) evaluation, CCISD ensures both funding sources are managed transparently and in full compliance with state laws.

 

How does the State of Texas oversee school district finances?

Texas public schools are legally required to get a third-party audit of its finances every year. This audit examines every dollar of revenue and expense, ensuring the district abides by not only Federal and Texas laws, but that it holds true to the budget approved by trustees for the fiscal year. The state requires the audit be presented to the Board of Trustees by a specified deadline, which depends on the fiscal year the district operates within. Once the audit is accepted by the board, it is then submitted to the Texas Education Agency for an additional review. All adopted budgets and external audits are legally required to be posted to the district website. CCISD's can be found on the Financial Transparency page, which is linked at the top of this page.

Additionally, the Texas Education Agency evaluates public schools in the state on financial integrity through the Financial Integrity Rating System of Texas (FIRST), which looks at 21 indicators and determines whether a school district follows the laws and guidelines set by TEA on revenue, spending and auditing with a maximum score of 100 points. That rating is then presented in a public hearing at a Board of Trustees meeting each fall. In Copperas Cove ISD, the district has received four consecutive perfect scores on FIRST and has never scored below a "Superior Rating," which is the financial equivalent to an "A" rating.

In addition to these requirements, CCISD publishes its monthly check register to the district website and reports it to the Board of Trustees each month. Although this isn't required by the State of Texas, CCISD reports it in these two manners each month in order to remain transparent with the community with where their tax dollars are being spent.