Bonds
Prior state-funded cuts to school districts’ capital budgets have resulted in lower than needed financial resources to ensure capital needs are met. A bond is special funding that fills in the gaps where state funding is insufficient for capital needs. Bonds are loans made to school districts to purchase capital items and make capital improvements such as building new schools, renovating or improving school buildings, purchasing land, adding school security and enhancements, purchasing technology and equipment, replacing roofs or aging HV/AC units, and purchasing school buses and other vehicles.
Overrides
Overrides fund day-to-day operational expenses above and beyond the district’s revenue control limit. Avondale ESD has two overrides in place: a Maintenance and Operations (M&O) budget override and a District Additional Assistance (DAA) budget override.
Maintenance and Operations Overrides are used to provide additional funding to support people and programs. Arizona State Law allows school districts to increase their budgets, with voter approval, by 15 percent of their revenue control limit for a term of seven years. Many 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 sixth year, 2/3 in the seventh year, and is fully eliminated in year eight.
District Additional Assistance (DAA) Budget Overrides are used to provide additional funding to support capital items like school buses, vehicles, computers, equipment, textbooks, furniture, and facilities’ maintenance and renovations. Arizona State Law allows school districts to increase their capital budgets, with voter approval, by an amount up to 10 percent of the revenue control limit for a term of seven years. If the DAA override is not renewed, by the seventh year, it is fully eliminated in year eight.