Taxpayers pay a combined tax rate to Frisco ISD that supports two different funds. The maintenance and operations (M&O) tax rate funds the general operations of the District. This is like the part of a household budget that pays for utilities, food, clothing and gasoline. As schools are a people-intensive business, about 80 percent of these funds go to personnel costs.

The interest and sinking tax rate (I&S), often called the debt service tax rate, funds the debt generated by the issuance of schoolhouse bonds. This is like the part of a household budget that pays for the home mortgage, the car loan or a financed expenditure for a computer or other large item. Frisco ISD must seek the approval of voters to authorize the issuance of bonds. Although voters approve the entire program, the bonds are only issued as school projects are needed rather than all at once. Most bonds are issued for 30 years, but the principal amount issued for short term assets, such as technology, are paid off more quickly.