School boards may use capital outlay funds for school costs

A school district board may spend capital outlay fund money on the listed costs and purchases. Allowed uses include property, facilities, and equipment; certain installment or lease-purchase payments; insurance premiums; textbooks; instructional software; and student transportation costs. For student transportation contracts or mileage reimbursements, the fund may cover up to 15 percent of the amount. A warranty bought with the fund cannot include or require supplies. Installment contracts, lease purchases, and capital outlay certificates together cannot exceed 3 percent of taxable value. The district must provide a yearly tax levy sufficient to make the required payments, including interest.

A school district board may transfer capital outlay fund money to its general fund. The transfer is from a school district's capital outlay fund to its general fund. The transfer cannot exceed 45 percent of the tax revenue deposited in the capital outlay fund during that school fiscal year. The limit applies to tax revenue deposited during the current school fiscal year.