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Bonds & Levies
The Seeds of School Funding
A bond provides funding for capital projects such as purchasing property for schools, constructing new schools, or modernizing existing schools. Bonds are sold to investors who are repaid with interest over time from property tax collections, generally between 10-25 years.
BONDS
are for
BUILDING
60%
Bonds need a
supermajority
to pass
A levy is a short-term, local property tax passed by the voters of a school district that generates revenue for the district to fund programs and services that the state does not fund or fully fund as part of “basic education."
LEVIES
are for
LEARNING
Bonds need a
supermajority to pass
Bonds need a
supermajority to pass
Bonds need a
supermajority to pass
50%
+1
Levies need a
simple majority
to pass
How are schools funded?
State Categorical Funds
State categorical funds must be used for specific categories such as special education, learning assistance, etc. These funds are given for specific programs and are not available for other purposes.
State General Funds
State general funds partially fund "basic education," which can include teachers and text books, but does not include many things that parents and teachers would assume are "basic."
Federal
Federal funds help to fund specific programs that support special education, students learning to speak English, disadvantaged students, and sub-sidization of food services. The amount has dwindled over the years and is now <5%.
Local Taxes
13-15% of school funding comes from levies funded by local property taxes. Levy amounts are capped by legislature: The district cannot raise more money than the limit. Funds provided by the state do not fully cover the actual costs to operate a school district, so levies bridge the gap.
*
*Other
A tiny fraction (less than 1%) comes from fees (0.003%) and other sources (0.44%) such as payments from other districts, joint programs, grants, and non-state agencies.
Percentages may vary from year to year by a few points.
Federal & State funds do not cover many things that one would assume are "basic." School bonds and levies are necessary to bridge the gap in funding.
A replacement levy is the renewal of an existing enrichment levy that is about to expire. Typically, if a district is asking for a replacement levy to be approved by voters, it means that it is simply the continuation of an existing tax.
There are 3 main types of levies.
Levies
Capital levies (which include tech levies) fund things like modern technology, enhanced building security, and renovation projects. Capital levies can be approved for up to six years.
Capital
&
Tech
Levies
Enrichment levies, also known as Educational Programs and Services (EP&O) and Maintenance and Operations (M&O) levies, allow a school district to provide teachers, support staff, supplies and materials, or services that the state only partially funds. Funding provided by the state does not fully cover the actual costs to operate a school district, so enrichment levies bridge the gap. Enrichment levies can be approved for up to four years.
Enrichment
Levies
Transportation
Levies
Transportation levies fund things like new buses or major repairs to older buses to prolong their useful life. Transportation levies can be approved for up to two years.
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