The district's operating budget is primarily designed to fund the day-to-day work of educating students. Major capital projects are different.
Roof replacements, major HVAC systems, electrical infrastructure, building additions, security systems, and significant renovations can cost millions of dollars and have useful lives extending for decades.
Michigan's school bond system provides a mechanism for districts to finance those long-term capital investments over time rather than attempting to pay for them entirely from annual operating revenues. State-qualified bonds are subject to review by the Michigan Treasury, including examination of project costs, enrollment projections, debt service, and facility needs.
Bond proceeds also cannot simply be redirected to classroom salaries or other operating expenses.
That distinction is important:
The bond is a capital investment, not a replacement for the district's operating budget.