Since the funding provided by the state does not cover the actual costs to operate a school district, districts often use levy funds to hire additional staff, or for student programming and services that are underfunded or not funded by the state. Some of the many things that levies help to fund may include: technology, extracurricular activities, special education, transportation, food service, operations, grounds and maintenance, preschool, and other activities. There are three main types of levies: enrichment, capital (includes technology), and transportation levies, although this is not a complete list. 

• Enrichment levies, also known as School Programs and Operations (SP&O) levies and Maintenance and Operations (M&O) levies, allow a school district to provide things like teachers, support staff, supplies and materials, or services that the state only partially funds. Funding provided by the state does not fully cover the actual costs to operate a school district, so enrichment levies fill in the gap.

1. Examples include: more teachers for smaller class sizes, additional counselors or nurses, student activities and sports, staff training, or preschool programs. Enrichment levies can be approved for up to four years.

• Capital levies (which includes technology levies) to fund things like modern technology, enhanced building security, and smaller renovation projects. Capital levies can be approved for up to six years.
   
• Transportation levies fund things like new buses or major repairs to older buses to prolong their useful life. Transportation levies can be approved for up to two years.

Typically, school districts propose levies of two to six years. After the allotted number of years, the levy expires. Voters must approve a renewal of funding, or local financial support for schools is no longer available. Generally, the levy you are voting on simply replaces one that is about to expire. Levies must be approved by 50% plus one vote.

NOTE: In simple terms, a replacement levy is the renewal of an existing enrichment, capital, or transportation levy that is about to expire. Typically, if a district is asking for a replacement levy to be approved by voters, it means that it is simply the continuation of an existing tax.

By law, bonds may not be used to pay for the day-to-day costs of operating schools or school districts. Bonds must be approved by a supermajority of 60% plus one vote.

A bond is a long-term investment that authorizes the district to purchase property for schools, construct new schools, or modernize existing schools. Bonds are sold to investors who are repaid with interest over time from property tax collections, generally between 12-20 years. Upon their sale, bonds provide funds only for capital projects, such as:

• New schools
• Acquisition of property
• Renovation or modernization of schools and athletic facilities

By law, bonds may not be used to pay for the day-to-day costs of operating schools or school districts. Bonds must be approved by a supermajority of 60% plus one vote.