Canyon ISD is committed to helping our community understand how funding works and how financial decisions are made.

One common question school districts receive is:

“If a district receives funding, why can’t that money be used wherever it is needed most?”

The answer comes down to how school funding is structured.

School districts receive different types of funding, and many dollars come with specific requirements that determine how those funds can be used.

Some funding supports daily operations, while other funding is dedicated for specific programs or purposes.

What Supports Daily School Operations?

The Maintenance & Operations (M&O) budget supports the everyday costs of educating students and operating schools.

These funds support:

• Teachers and staff salaries
• Classroom resources
• Student programs and services
• Transportation
• Utilities
• Campus and department needs

When Canyon ISD discusses current budget challenges, the district is primarily referring to operational funding.

Like many districts across Texas, Canyon ISD has experienced rising costs for expenses such as utilities, insurance, transportation and supplies while operational revenue has not increased at the same rate.

Why Can't Funding Be Moved From One Area to Another?

Some funding provided to school districts is designated for specific purposes and must be used according to state requirements.

Examples include funding for:

• Special Education – services and support for students with identified needs
• Career and Technical Education (CTE) – career-focused programs, equipment and student learning opportunities
• School Safety and Security – safety measures and required security initiatives
• Instructional Materials – textbooks, software and instructional tools used by teachers

These programs are important investments for students, but funding designated for these areas cannot be redirected to cover other operational expenses.

This is why a district can have funding available for specific programs while still facing challenges in the overall operating budget.
 

Doesn't Community Growth Mean More Money for Schools?

Another common question is:

“If our community is growing, doesn’t the district receive more funding?”

Not necessarily.

Under the Texas school finance system, increases in local property values do not always result in additional money available for school operations.

As local property values increase, the state funding formula adjusts (decreases) the amount of funding provided by the state.

This means districts can experience community growth while still facing challenges when operating costs increase faster than available revenue.

How Can Additional Operational Funding Be Generated?

A Voter-Approval Tax Rate Election (VATRE) is one option available under Texas law that allows voters to consider generating additional Maintenance & Operations revenue.

Unlike funding designated for specific purposes, additional M&O revenue provides more flexibility to support operational needs, including staffing, student programs, transportation, utilities and other daily expenses.

Why Understanding School Funding Matters

School funding decisions involve more than looking at a district’s total budget amount. It is important to understand:

• Where funding comes from
• How funds are allowed to be used
• Which dollars have specific requirements

Canyon ISD remains committed to providing transparent information, managing resources responsibly and making decisions that support students while protecting the long-term future of our district.

Thank you for your continued partnership and support as we work together to provide meaningful opportunities for every student.

Have questions?
Read the Canyon ISD Budget & Financial Planning FAQ.