What is the difference between a bond issue and an operating levy?
A bond issue provides funds for capital improvement projects – i.e., improvements that have a useful life of at least 5 years (typically much longer). The principal amount of bond issues cannot be used for general operations such as salaries, healthcare, and items with a useable life-span of less than 5 years. Operating levies provide funds for the general operations of the school district. General operating funds are used to purchase instructional supplies, employ staff, make repairs throughout the district, and pay for educational services.
