Bonds and overrides are voter-approved initiatives that generate additional tax revenue to fund projects and operations for local school districts. Bonds and overrides are tools that a local community can use to provide funds for their local schools above and beyond what the state provides.
Maintenance & Operation (M&O) Budget Override
A school district’s budget is limited by law. Yet school districts may ask voters for district funding to supplement budget allocations from the Legislature. With approximately 85 percent of the M&O budget used for staff salaries and related benefit costs for the district’s 2,000 employees, community support is necessary to maintain current programs or services.
With voter approval, public school districts may issue bonds (which are purchased by investors) to fund projects that have a useful life longer than five years. Examples include building new schools, building improvements (HVAC, roof, and lighting), technology, school buses or equipment. Bonds are repaid over a set period of time.