Which of the following best describes the revenue sources used to fund a typical school district budget?

• A. Local taxes, state aid, federal aid, grants, interest, tuition, and budget surplus
• B. Local taxes only
• C. Local taxes, state aid, federal aid, grants, interest, tuition, and budget surplus
• D. Tuition and fees only

Answer: (C)

Funding a typical school district budget comes from a mix of revenue streams, not just one source. Local property taxes provide the foundation for operating funds, but state aid helps support mandated programs and equity across districts, and federal aid funds specific programs and services like special education and Title I. Grants add money for particular projects or initiatives, while interest income comes from investing district funds. Tuition or fees can contribute for nonresident students, adult education, or special programs, and any remaining balance from prior years—often kept as a budget surplus or fund balance—can be used to support the budget. Because districts rely on all of these sources to cover day-to-day operations and initiatives, the best description includes local taxes, state aid, federal aid, grants, interest, tuition, and budget surplus.