The Huntsville ISD tax rate is divided into two “buckets” - Maintenance and Operations (M&O) and Interest and Sinking (I&S).

Maintenance and Operations (M&O) dollars pay for the day-to-day operations of the district. Interest and Sinking (I&S) dollars pay back bond debt that funds capital expenditures, buses, and technology. Without bond (I&S) funds, major purchases (including safety upgrades, buses, renovations, technology, expensive repairs, and system replacements) are paid from the same side of the budget that pays for employee salaries, student programs, and other operational expenses.

Most districts spend over 85% of their Maintenance and Operations (M&O) dollars on people – in the form of employee salaries and benefits. Huntsville ISD spends approximately 70% of the M&O budget on people because the district must use M&O dollars to pay for items (like expensive repairs) that other districts finance through bond debt. Voter approval of the 2021 Bonds will shift maintenance spending to the I&S side of the budget, leaving more money for competitive salaries and instructional programming.