Rising property values lead to an increase in the amount of tax revenue collected, but this does not mean the school district sees an increase in revenue. There is a relationship between local and state funds where, when local tax collections increase, state funds to a school district decrease.
Rising property values do generate additional tax dollars. However, not all of those tax dollars are retained by the district. Excess tax collections are sent back to the state through recapture.
For a more detailed explanation, visit the Budget Mechanics page above.