A school district receives funding from the state based on two major components: enrollment, and local property values. Property taxes paid by homeowners and businesses make up the majority of revenue for local public schools. Texas school districts receive funding from the Texas Education Agency (TEA) based primarily on student attendance. State revenue makes up the difference between total revenue earned and local tax revenue. Your local school district is funded using a formula that is set in statute and based on number of students enrolled, student demographics, attendance, and the school’s participation in special programs.