Introduction
For communities that rely on public schools for their children's education, bonds are a normal part of school life. When it comes to funding the daily operations of a school, levies are usually the main source of income. However, when a new building is needed or a school remodel is required, the district will quite often use a bond to acquire the money needed.
What is a bond?
A bond is essentially a tax. A bond looks at how much it is going to cost for the school-related project and then divides that cost by the amount of people being served by that school district. The cost is usually divided based on the value of the home. This way those who can afford to pay a greater weight of the tax take some of the burden off of those who cannot afford it.
How a Bond is Passed
Since a school bond requires the raising of community taxes, a bond must go before the community's voters, 60 percent of whom must approve the bond. If the bond is approved, the district is able to collect the money through property taxes, and the new buildings or remodels can go forward. If the bond is rejected, the district must then either rewrite their bond for a new amount and send it out for another vote or find other sources of funding for their project.
