When a School District borrows referendum money, the funds are not spent all at once. The reimbursement from the State (64%) is given back after the year referendum money is spent, after being verified.
That’s right, every referendum dollar spent has to be verified by the State. That money cannot go to salaries, materials or anything beyond District referendum debt payment.
When the 64% is reimbursed to us, we add that to the 36% that is covered by local taxpayers, and the amounts together make up our debt payments: $1.75 Million per year.