School districts must maintain and operate effective financial management systems in a highly regulated environment. This revenue is generated from local, state, and federal sources.
Local revenues come primarily from property taxes.
State revenues come from grants and appropriations from the state's two-tier funding system. Generally, Tier I funding is designed so that the district and the state share the cost of providing basic educational services. The share for each depends on the district's property tax base. School districts receive state Tier II funds based upon their weighted average daily attendance. Federal revenues are received through various grants designed to supplement programs already in place.