AISD receives nearly 90 percent of its revenues from local property taxes. The share funded by each depends on the district's property tax wealth per student. In short, school districts with higher property wealth receive less state funding than low-wealth school districts. To treat school districts fairly in funding, the state uses WADA to measure the extent to which students participate in special programs. The Tier II tax rate generates resources for education in the form of a guaranteed yield.
Federal revenues represent the smallest source of public education funding.
Most federal funds are appropriated for specific programs or to provide services to a specific group of students. The National School Breakfast and Lunch Program is one example. During this same period, local revenues grew by 51 percent, federal revenues nearly tripled, and state revenues decreased nearly 13 percent. Because of AISD's property wealth, district officials anticipate increased dependency on local revenue sources in the future. Exhibit 7-3 lists the tax rates for AISD and its peer districts in effect for 1998 and 1999.