General Information about Bonds and Overrides
Bonds & Overrides
Bonds and overrides are voter-approved initiatives that
generate additional tax revenue to fund projects and operations for local
school districts and community colleges. Bonds and overrides are tools that a
local community can use to provide funds for their local schools and colleges
above and beyond what the state provides.
Why are Bonds and Overrides Important?
Bonds and overrides provide local funding for schools and
community colleges. Over the past few years, our schools and colleges have
weathered significant state funding cuts. Meanwhile, Arizona’s teachers and
students have been asked to meet higher expectations and do more with less. We
can’t expect our schools to provide a world-class education without the
resources to do so.
What is a Bond?
With voter approval, public school districts or community
colleges may issue bonds (which are purchased by investors) to fund projects
that have a useful life longer than five years. Examples include building new
schools, building improvements (HVAC, roof, and lighting), technology, school
buses or equipment, to name a few. Bonds are repaid over a set period of time.
What is an Override?
Overrides are used to provide additional funding to support
what happens inside school or community college classrooms (teaching, learning
and operations). There are three types of overrides. A maintenance and
operations override (M&O) supports things such as teacher salaries,
benefits, supplies and general operations. A special override supports specific
programs, such as full-day kindergarten, art, music, physical education, etc.
And finally, a capital override funds equipment, furniture, technology,
vehicles, etc.
School districts may ask for an increase of up to 15% of
their budget for their M&O override, up to 5% for a special override and up
to 10% for a capital override (M&O and special overrides combined cannot
equal more than 15%). Overrides are approved for a term of 7 years. Many school
districts will ask voters to approve a renewal in year 4 or 5 of an override to
maintain a consistent level of funding. If not renewed, the amount decreases by
1/3 in the 6th year and 2/3 in the 7th year.
So how do Bonds and Overrides come to be?
School boards or college governing boards call for an
election and a local stakeholder committee is formed. Often these groups are
called political action committees (PACs), but they can also be just a group of
volunteers who come together to support the election. Schools and colleges can
provide limited factual information about the bond or override and are not
allowed to influence the outcome of the election. The stakeholder committee
gets the word out and builds support for the election.
What Should I Look For On My Ballot?
Override ballot language: “budget increase, yes” or “budget
increase, no.” While it says “increase” it actually may be a continuation from
a previous override, and not an actual increase on your tax bill.
Bond ballot language: “bond approval, yes” and “bond
approval, no.”
I’m Only One Person, Why Does My Vote Matter?
Every vote counts! Only 33.4% of Arizona voters turned out
for the 2014 general election. Meanwhile, over the last several years, dozens
of bond and override elections across the state passed or failed by less than a
few hundred votes and some by less than 10 votes. Our kids are counting on us
to Vote 4 Education.
Bonds and Overrides: If education is your top priority, use
this guide to learn more about what bonds and overrides are.
Bonos y Anulaciones: Si la educación es su prioridad
principal, use esta guía para aprender más sobre que son los bonos y
anulaciones.
Source:
https://www.expectmorearizona.org/study/bonds-overrides/