Finance Fundamentals

The Richardson ISD (RISD) has a $440 million dollar general budget to operate 49 schools and provide for the academic needs of more than 36,000 students. Our Budget 101 webpage provides an overview of the RISD budget—where our funding comes from, how it is spent, and how we ensure funds are used so we achieve our North Star Goal – where every student, teacher and leader will meet or exceed their academic growth goals.

Where does the money come from?
Where does the money go?
How are resources allocated to schools?
The Budget Cycle and Timeline
Frequently Asked Questions

Budget 101

What Drives the RISD Budget?

Enrollment

Attendance

Property Value

Strategic Plan Priorities

Where does the money come from?

Texas public schools are funded by three main sources

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State Funding:
$133 million

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Local Funding (including property taxes): $262 million

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Federal Funding:
$6 million

Did you know?

The majority of the district’s funding comes from local sources, primarily property tax revenue.

M&O vs I&S

School budgets/tax rates are made up of two parts and the money generated from each part can only be used for very specific types of expenses.

Maintenance and Operations (M&O)

This portion of the budget and tax rate supports the day-to-day operating costs of our schools, including employee salaries and benefits, utilities, fuel, and classroom supplies. These funds directly affect daily teaching and learning and cover most of what students and staff experience during a typical school day.

Interest and Sinking (I&S)

This portion of the budget and tax rate is dedicated to paying off bonds issued for construction and capital improvements. I&S funds cannot be used for operational expenses, such as instructional salaries and benefits. These funds are used solely to repay bonded debt, and a school district may only take on new debt after voters approve a school bond proposition.

Have a Question?

Please submit a Let’s Talk question and a staff member will respond.

Where does the money go?

Education is a people business. The school district serves more than 36,000 students in 49 schools. Because of this, approximately 85% of our budget goes to staff salaries, wages, benefits, and other associated payroll costs. The remaining 15% is spent on maintenance and operation costs including utilities, fuel, property insurance, classroom and custodial supplies, and maintenance.

Breakdown of where the Money Goes:

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Salary, Benefits, & Associated Payroll: $374 million

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Maintenance and Operation Costs: $66 million

Did you know?

Approximately 85% of the district’s budget is allocated to personnel costs (salaries and benefits) for our incredible teaching, administrative and support staff.

How are resources allocated to schools?

Enrollment

We allocate staff based on enrollment. Our staffing standards include ratios of projected students per classroom teacher. The staffing standards are applied to the projected student enrollment to come up with the initial staffing allocations. Enrollment and the needs of schools are continually monitored, and additional support is provided when available.

Need

We also differentiate allocations based on the needs of the students the school serves. For instance, if a school has a higher population of English language learners, they will receive additional staff to provide English language development services. The same goes for schools with a higher population of special education students. Schools that have a high percentage of children from low-income families receive additional staffing, support, and interventions to help meet the needs of those students and families.

Programs

We also allocate staff and resources based on programs at the school. If a school has a special program, such as dual-language (DL) or career-technical education (CTE), specialized staff is provided. The Special Student Services Department determines special education staffing for schools so that each student receives an appropriate education in the least restrictive environment as determined by the student’s Individualized Education Program (IEP).

Did you know?

Although we budget based on projected enrollment, the state funds us based on Average Daily Attendance (ADA)

The Budget Cycle and Timeline

2026 - 2027 Budget Calendar:

Fall 2025– Needs analysis for the next school year
December 2025 – Budget Calendar
January 2026 – Annual Demographers Report
Spring 2026 – Staffing projections completed
May 2026 – Board of Trustees adopts compensation plan for next school year
June 2026 – Board of Trustees adopts the budget for the next school year
September 2026 – Board of Trustees adopts the local property tax rate, which is set by the state

Fiscal Scorecard

Richardson ISD is one of a handful of Texas school districts that maintain the highest available bond ratings. This lowers the costs of issuance and results in further cost savings as the strong ratings enable RISD to achieve low interest rates on the debt.

AAA Moody’s Investors Service
AA+ Standard & Poor’s

Have Questions?

Frequently Asked Questions

Where does RISD’s funding come from and how is the amount determined?

The majority of our funding comes locally from property taxes. Every two years (each biennium), the legislature determines how much schools will receive.

School districts receive more money depending on:

Student enrollment
The number of special education students enrolled
The number of English language learners they serve

We watch these indicators closely to help us project how much funding we will have to work with in the coming years.

What is Average Daily Attendance (ADA) and how does it impact the district’s budget?

Average Daily Attendance (ADA) is the average number of students present in our classrooms each day. In Texas, school funding is based on attendance rather than total enrollment. This means RISD’s state revenue is directly tied to our reported ADA; when students are absent, the district loses the per-pupil funding for those days, which impacts the resources available for all students.

How does RISD spend its funding?

Education is a people business. The school district serves more than 36,000 students in 49 schools. Because of this, 85% of our budget goes to staff salaries, wages, benefits, and other associated payroll costs. The remaining 15% is spent on operation costs such as transportation, nutrition services, utilities, class supplies, and maintenance.

How does RISD allocate staffing and funding to schools?

Funding is allocated to schools based on three factors: enrollment, need, and programs. To determine staffing for a school, first we look at the number of students attending and identify the needs of the students enrolled. Schools with more English language learners, students who receive special education services, or students from low-income families receive additional support. A school with a special program also receives additional resources.

Every decision is based on making sure we’re meeting the needs of our students.

What is a “fund balance,” and what is it used for?

A school district’s ending fund balance can be compared to the district’s savings account. These are funds that are set aside to deal with the unexpected, such as a natural disaster or other emergency.

Have additional questions about RISD and the budget process?

Please submit a Let’s Talk question and a staff member will respond.

Did you know?

RISD maintains 66 facilities covering more than 6 million plus square feet of indoor space with 35 million square feet of grounds.

6 million square feet = 2 AT&T Stadiums

35 million square feet = 4 Six Flags Over Texas

Resources

Some documents may contain content that is not accessible to all readers. To obtain assistance accessing these documents, please contact RISD at 469-593-0301.

Finance Fundamentals