WILD ABOUT THE DETAILS: OUR LOCAL TAX RATE
Discover the Difference Between M&O and I&S
Local funding for G-PISD comes from property taxes. The district sets a tax rate, but the San Patricio County Appraisal District sets your property value.
The local tax rate is divided into two main parts, each with its own purpose — and its own rules for how the money can be used.
Maintenance & Operations (M&O) is the portion of the budget that funds day-to-day needs. These funds keep the district running—paying for staff salaries, classroom supplies, utilities, and student transportation. It’s similar to the part of your personal budget that covers groceries, gas, and monthly bills.
The only way to increase the M&O side of the budget is to improve attendance, increase enrollment or call a Voter-Approval Tax Rate Election.
Interest & Sinking (I&S) is reserved for long-term investments like building schools, renovating facilities, or making major safety improvements. These funds come from bonds approved by voters and can only be used to repay that debt. Think of it like a home loan: the money you borrow to build or renovate your home can’t be used to pay for everyday expenses.
The only way to increase the I&S side to borrow money for larger construction-related capital improvement expenses, is to ask voters to consider a school bond election to incur and pay back debt.
DIGGING INTO OUR LOCAL TAX RATE
Every dollar collected through local property taxes goes into one of two funds — each with a very specific job:
Maintenance & Operations (M&O) Rate
$0.7646 per $100 of assessed property value. These dollars support everyday expenses like salaries, supplies, and services that keep the district running.
Interest & Sinking (I&S) Rate
$0.3400 per $100 of assessed property value. These dollars are dedicated to repaying debt from voter-approved bonds used for construction and major facility improvements.
That adds up to a total tax rate of $1.10 per $100 of assessed value.
When Property Values Rise, State Funding Falls, & Recapture Payment Rises
Over the past 10 years, G-PISD’s total tax rate has dropped by nearly 25 cents — a significant decrease, largely driven by changes in state law.
As a Chapter 49 recapture district G-PISD surrenders $16 million in local maintenance and operations tax collections each year to the state.
This number will grow as Chapter 313 Agreements expire.