How are school districts funded?
State Funds:
States allocate funds to school districts based on various factors such as enrollment, student demographics, and local property values. This funding is often distributed through a formula that aims to provide equitable resources to all districts. State funds can cover a wide range of expenses, including teacher salaries, instructional materials, facility maintenance, and special education services.
Bonds:
Bonds are essentially loans that school districts take out from investors to raise money for large capital projects, such as building new schools, renovating existing facilities, or purchasing major equipment. These bonds are typically repaid over time with interest. Investors purchase these bonds with the expectation of receiving regular interest payments and eventually getting their principal back when the bond matures.
Levies:
Levies are taxes imposed by local governments, typically school districts, to generate revenue for operating expenses or specific educational programs. Levies can be in the form of property taxes or special assessments on income or sales. They are often used to fund day-to-day operations, including salaries for teachers and staff, instructional materials, transportation, and extracurricular activities.
Both bonds and levies require approval from voters in most jurisdictions. Bond measures usually require a supermajority or a specified percentage of "yes" votes to pass, while levies may require a simple majority. The specific rules and regulations governing the issuance of bonds and levies vary depending on the laws of the state or local jurisdiction.
The proportion of funding coming from each source can vary significantly depending on factors such as state laws, local property values, and the specific needs of the school district. In some cases, schools may also receive federal funding for specific purposes such as special education, Title I programs for disadvantaged students, and school nutrition programs.