2019 School Bond: What can bond funds be used for?

Bond proposals can often be confusing for voters, so let’s take a moment to discuss what bond funds can (and cannot) be used for:

Generally speaking, a bond is the mechanism by which school districts pay for large-scale projects, including new facilities and major renovations. All bond proposals are approved by the state only for a set scope of projects and nothing more. Once a bond proposal is passed, the school district sells one or more bonds in the authorized amount and uses those funds to pay for only the projects listed in the proposal.

In this way, bonds are not unlike a mortgage on a home as they are typically paid off over the course of 20-30 years. Just as most homebuyers cannot afford to buy a home outright, the vast majority of school districts fund new and renovated facilities using bonds.

Bond funds can only be used for new construction, additions, renovations, energy conservation improvements, land purchases, bus purchases, site development, debt refunding and direct bond program costs (professional fees, audit fees, etc.)

Bond funds cannot be used for employee salaries or employee compensation of any kind. In addition, bond funds cannot be used for operating costs including the costs for repair and maintenance.

For more information on the Peoples’ Proposal, visit the District website at LapeerSchools.org and click on the bond proposal graphic on the main page.

lapeercs

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s