What is a School Bond?

A general obligation bond is used by public school districts to finance school facility projects or other capital projects. Oregon is one of only a handful of states that does not provide funding to school districts for building new schools or the maintenance and modernization of existing facilities. In Oregon, the Legislature allocates dollars each year for teaching and learning. However, the construction of new schools and the modernization and preservation of existing schools is the responsibility of the local community. School districts are expected to finance these projects with general obligation bonds authorized by the district’s local voters.