What is the purpose of a school district budget?
The budget represents a plan for receiving and expending money. It tells the governing school body, its employees, and the public how much the district can spend during the year and for what purposes. It projects how much revenue will come from what sources. The budget also satisfies a minimum level of financial and program information for local, state, and federal governments – requirements imposed by law. State law requires each school district to budget its income and expenses every year and to make the budget available for public inspection before final adoption. There are actually two different school district budgets: the capital budget, which deals with long-term items like school construction, and the operating budget, which covers the day-to-day costs of running the school system. The capital budget is funded primarily by the sale of bonds. School districts essentially borrow the money and pay it off with interest over a long period, much like a homeowner pays off a mortgage.
