Acronyms & Definitions

All Texas school districts are entitled, under the Texas Constitution, to receive a designated amount from the state of Texas Permanent School Fund. ASF distributions go toward a district's Tier 1 Entitlement and are based on the district’s prior year's average daily attendance (ADA).

For additional information about the Available School Fund, check out the Money Coming In (Revenues) part of the Budget Mechanics section.

Average Daily Attendance (ADA) is the number of students in average daily attendance or the sum of attendance for each day of the minimum number of days of instruction.

The Basic Allotment (BA) is set by the Texas legislature, guaranteeing every school district a certain amount of funding for each student based on the Average Daily Attendance (ADA). The BA is currently set at $6,160, with additional funding depending on district and student characteristics.

A portion of the tax rate that brings in revenue above the Tier 1 Entitlement and can generate additional state aid but is subject to Recapture. Current estimates project 60 percent of this revenue would stay in Leander ISD and 40 percent would be sent back to the state as recapture.

For a detailed explanation of the Copper Pennies, visit the Copper Pennies, part of the Budget Mechanics section.

Expenses or spending within a governmental entity – like a school district – are referred to as expenditures. Expenditures represent the spending of money.

For a detailed explanation of Expenditures, visit the Expenditures part of the Budget Mechanics section.

A fund balance is like a savings account or emergency account that includes money that school districts do not allocate to budgets and hold in reserve. A fund balance is generated when annual revenues exceed actual operating costs. These funds are used to manage fluctuations in cash flow and to cover unforeseen expenses.

For a detailed explanation of a school district's Fund Balance, visit the Fund Balance part of the Budget Mechanics section.

A portion of the tax rate that brings in revenue above the Tier 1 Entitlement and is not subject to Recapture, meaning 100 percent of the revenue generated from this part of the tax rate stays in the district. They are referred to as “golden” because of their high value to a school district and because State aid can be generated to fully fund the calculated entitlement.

For a detailed explanation of the Golden Pennies, visit the Golden Pennies, part of the Budget Mechanics section.

House Bill 3 is a bill passed by the 2019 Texas Legislature.

For a more detailed explanation of the impact HB3 has had on school finance, visit the Compression of the Tax Rate part of the Budget Mechanics section.

Interest and Sinking (I&S) is part of the tax rate. Dollars from this portion of the rate can only be used to pay down existing debt. These tax collections cannot be used for operations, such as increasing teacher salaries or building facilities.

For a more detailed explanation of I&S, visit the I&S part of the Budget Mechanics section.

The Maintenance and Operations (M&O) part of the tax rate. Dollars from this portion of the rate are used toward expenses like payroll, utilities, supplies, and transportation.

For a detailed explanation of M&O in Leander ISD, visit the M&O part of the Budget Mechanics section.

The income of a governmental entity – like a school district – is received from taxation and other local, state, and federal sources. Revenues are used to finance the services provided to its citizens.

For a detailed explanation of the revenues of a school district, visit the Revenues part of the Budget Mechanics section.

Voter-Approval Tax Rate Election (VATRE): State law requires that school districts seek voter approval to raise their M&O tax rate above a prescribed amount.

If the board adopts a tax rate that’s greater than the calculated rate set by law, that triggers an election called a Voter-Approval Tax Rate Election, which is held on a uniform election date (November). If the voters do not approve, then it reverts the M&O rate to the maximum allowed under state law.

For a more detailed explanation of why Cedar Hill ISD would pursue VATRE, visit the Managing the Tax Rate section of the Budget Deficit page.

Weighted Average Daily Attendance (WADA) is an adjusted student count taking into account student and district characteristics by which students in certain programs are “weighted” to generate additional funds.