Bonds and Levies

Simply stated, levies are for learning and bonds are for building. Bonds and levies are local property taxes passed by the voters of a school district that generates revenue to fund programs, services and projects that the state does not pay for as part of “basic education.”

State funding does not fully cover the costs to operate schools, so districts use levies to support staff, programs and swervices not fully funded by the state. Levies can fund technology, safety, extracurriculars, facility maintenance, transportation and more.

There are three main types:

• Educational Program and Operation Levies (EP&O): Fill gaps in funding for teachers, support staff, supplies, student activities, athletics and enrichment programs. Typically approved for up to four years.
• Capital Levies: Fund building improvements, technology upgrades and security enhancements.
• Transportation Levies: Support new buses or major repairs to extens bus life.

Levies typically last two-four years. After expiration, voter approval is required to continue funding. A replacement levy simply renews an existing levy that is expiring. Levies must pass by 50% plus one vote.

By law, bonds may not fund the day-to-day costs running schools. They must be approved by a supermajority of 60% plus one vote.

A bond is a long-term investment that allows the district to buy property for schools, construct new schools or modernize existing facilities. Bonds are sold to investors and repaid with interest, generally over 12-20 years through property tax collections. Funds from bonds can only be used for capital projects, such as:

• New schools
• Acquisition of property
• Renovation or moderinization of schools and athletic facilities