What’s the difference between a levy and a bond?
Simply stated, levies are for learning, and bonds are for building. In Meridian School District, we are grateful to voters for their ongoing support of school operation levies.
Levies
Since the funding provided by the state does not cover the actual costs to operate a school district, districts often use levy funds to hire additional staff, or for student programming and services that are underfunded or not funded by the state. Some of the many things that levies help to fund may include: technology, extracurricular activities, Special Education, transportation, food service, operations, grounds and maintenance, preschool, and other activities.
There are three main types of levies: operations, capital (includes technology), and transportation levies, although this is not a complete list.
- Operation levies, also known as Educational Programs and Operations (EP&O) levies (previously Maintenance and Operations levies), allow a school district to provide things like teachers, support staff, supplies and materials, or services that the state only partially funds. Funding provided by the state does not fully cover the actual costs to operate a school district, so enrichment levies fill in the gap. Examples include: more teachers for smaller class sizes, additional counselors or nurses, student activities and sports, staff training, or preschool programs. Enrichment levies can be approved for up to four years.
- Capital levies (which includes technology levies) to fund things like modern technology, enhanced building security, and smaller renovation projects. Capital levies can be approved for up to six years.
- Transportation levies fund things like new buses or major repairs to older buses to prolong their useful life. Transportation levies can be approved for up to two years.
By law, operations levies can only be proposed for a period of four years or less. Typically, school districts propose levies of two, three, or four years. After the allotted number of years, the levy expires. Voters must approve a renewal of funding, or local financial support for schools ends. Generally, the levy you are voting on simply replaces one that is about to expire. Levies must be approved by 50% plus one vote.
Bonds
By law, bonds may not be used to pay for the day-to-day costs of operating schools or school districts. Bonds require a supermajority, at least 60% of votes, to be approved. Bonds provide funds only for capital projects, such as:
- New schools
- Acquisition of property
- Renovation or modernization of schools and athletic facilities
Contact
Daniel Yorton
Director of Business and Finance
360-318-2161
Previous Levies and Bonds
Property Tax Exemption for Senior Citizens and People with Disabilities
If you are a senior citizen or a person with disabilities with your residence in Washington State you may qualify for a property tax reduction under the property tax exemption for senior citizens and people with disabilities program. Learn more on the Whatcom County Auditor’s Website.