§ 25841 District Bond Approval Rules

• •A district can borrow money or issue bonds, but they can't borrow more than their usual yearly income unless most voters agree.
• •If they want to borrow more than their yearly income, at least two-thirds of the voters must say yes.
• •They don’t need another vote if the new borrowing is for the same purpose as a previous one and doesn’t exceed the leftover money from that borrowing.
• •Any leftover money from old bonds or unsold bonds counts as part of their yearly income.

A school district wants to borrow $10 million to build a new school.

If the district’s usual yearly income is $8 million, they can’t borrow the full $10 million unless at least two-thirds of the voters agree. But if they already had a $12 million bond approved and only used $9 million, they can use the leftover $3 million without another vote.