Liberty Hill ISD

School districts are required by state law to ask voters for permission to sell bonds to investors to raise the capital dollars required for projects such as renovations of existing buildings or building a new school.

Essentially, voters are permitting the District to take out a loan and pay that loan back over an extended period of time, much like a family takes out a mortgage loan for their home.

A school board calls a bond election so voters can decide whether or not they want to pay for proposed capital projects. School boards then have the authority to sell bonds when the capital projects are needed.

Bond funds can be used to pay for new buildings, additions and renovations to existing buildings, land acquisition, technology, buses, and equipment, among other items. By law, bond funds may not be used to fund daily operating expenses, such as salaries or utilities, which are paid for out of the district’s Maintenance & Operation (M&O) budget.

Homeowners borrow money in the form of a mortgage to finance the purchase of a home.

A school district borrows money in the form of bonds to finance new schools and renovation projects. Both are repaid over time, but for a school district to sell bonds (borrow money), it must go to the voters for approval.

By law, bond funds may not be used to fund daily operating expenses or salaries. Bond funds may only be used for the projects described.

Texas law prohibits public school districts from using bond funds for compensation increases or teacher salaries.