School Finance 101
A school district’s tax rate is comprised of two components: the Maintenance & Operations tax (M&O) and the Interest & Sinking tax (I&S). Bond sales only affect the I&S rate.
What is M&O and I&S?
Maintenance and Operation (M&O) funds are primarily used for the ongoing operational needs of the district. These funds ensure that the schools can function on a day-to-day basis.
Interest and Sinking (I&S) funds are used for paying off debt incurred by the school district. The proposed bond would only impact the I&S portion of the school tax rate.