Why is the Board of Education choosing to propose a bond rather than reallocating funds or taking the money from capital reserves and surplus from the 2001 bond?
The main reason is to maximize state aid. The Board is placing a new bond before the community rather than transferring unspent funds because, regardless of the funding source, State Aid on the roofing project is approximately 50%. The 60% rate applies only to items approved in the 2001 bond fund. If the Board reallocates funds from the 2001 bond, it would receive 10% less in state aid for the dollars spent. With projects in the bond still in completion, the administration and board believe that a separate bond for roofing is a prudent and economical course.
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