Friday Fast Facts by Katy ISDFriday Fast Fact: Texas School districts are funded by two primary sources — local revenue and state revenue. Local revenue comes from property taxes and state revenue is allocated based on enrollment and other factors. Bonds fund the capital needs of the district that go beyond daily the maintenance and operations costs which are funded by local and state revenue. Get a detailed explanation on district budgets and funding, as well as how bonds come into play: www.katyisd.org/site s/bonds/Pages/Financ e.aspx