A method of borrowing employed by school districts to pay for a large capital investment, used in much the same way as a person who takes out a mortgage to purchase a home. Since 2001 voters in a school district can authorize a local general obligation bond with a 55% “supermajority” vote. In the past a two-thirds vote was required. Districts can choose to seek bond passage with either a two-thirds vote or a 55% vote that requires greater accountability measures. The principal and interest are repaid by local property owners through an increase in property taxes. A simple majority of state voters must approve a state general obligation bond, which is repaid by state taxes and has no impact on property tax rates.
