§ 1111 Bond Payment Appropriation

• •Money comes from the General Fund in the State Treasury.
• •The amount taken each year equals what is needed to pay bond principal and interest as they become due.
• •The same money also covers the costs for Section 1112, even if the program spans multiple fiscal years.

A school district borrows money by selling bonds to build a new school. Every year the state takes money from its main fund to pay the bond's interest and principal, and also to keep the special program from Section 1112 running even if the program lasts more than one year.

Because of this law, the state automatically pulls enough cash each year to cover the bond payments and to keep the Section 1112 program funded, without waiting for a new budget each year.