What is a school bond, and how may funds be used?

A school bond is similar to a promissory note -- a promise to pay back (with interest) a certain amount of money that is being borrowed for a specific use.

State and federal laws regulate how school districts issue bonds and how the bond proceeds may be used. Bond revenue may be used for new construction, renovations to existing facilities, land acquisition, equipment, technology and other approved items associated with providing school district facilities. State law does not allow revenue from bond sales to be spent on personnel or operating costs such as utility bills, supplies, fuel or other costs associated with daily district operations.