This bond will have no impact on the tax rate. Due to the recently approved school finance bill from legislature, the district’s M&O tax rate has decreased by 10 cents. Additionally, the district has reduced the I&S rate by 2 cents, resulting in an overall tax reduction of 12 cents for Brock residents.
What is an M&O tax rate versus an I&S tax rate?
A school district's budget is generated from three sources: federal, state, and local funding. Local funding from property taxes makes up the largest source for school districts.
A school district's total tax rate is primarily funded by local property taxes and made up of two parts: the maintenance and operations (M&O) rate and the interest and sinking (I&S) rate. Each has a designated purpose and budget.
The M&O budget is used for daily operations of the district, including utilities, salaries,
furniture, supplies, food, gas, and regular maintenance items.
The I&S budget is used to repay debt for capital improvements through voter-approved bonds. These improvements include new construction, renovations, HVAC and roofing replacements, land purchase, furniture, and technology.
Bond elections only affect the I&S tax rate. Funds from a bond CANNOT be used as part of the M&O budget or to increase salaries.