School funding is set by the state and based on enrollment and state funding formulas, not property values. Schools do not get more money when property values increase or more homes are built. When the total value of property increases in a school district, the set tax levy then gets divided among more property owners, so everyone’s share gets smaller. Therefore, it is a benefit to taxpayers, not the school district, to have new growth and development in the community.
Schools are funded differently than cities and counties, and school funding is set by the legislature. Only a voter-approved referendum can increase the funding.
Did you know that the school district portion (received by district) of taxes are less today (2021) than they were 20 years ago? Overall property taxes have increased, but the school portion of your property taxes has not.
What about assessed values increasing with the hot housing market? If everyone’s property value increases by 10%, the education funding remains constrained by state laws and funding formulas based on enrollment. So, if everyone’s property increases equally, there is no change in the amount each person pays.
In summary, there is a limit on the amount that school districts can collect in taxes, based on the number of students in the community. If property values increase, the district is limited to setting its tax levy based on enrollment and the total tax levy remains the same amount as if values had stayed the same.