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Bond & Levy FAQ

Bonds & Levies FAQ

A free public education is a fundamental right guaranteed by law to every child in the United States. Washington State provides funding for “basic education,” but those dollars do not cover every program, service, or resource students need—or fully fund some of the costs districts must incur to provide them.

Like many school districts in Washington, the Chehalis School District relies on local measures approved by voters to help close this funding gap. These measures generally take two forms: bonds and levies. On this page, learn how each works, what they fund and why local support is essential to meeting the needs of Chehalis students and schools.

 

A split image showing a construction crane lifting a sign that reads 'BONDS ARE FOR BUILDING' and a child writing on a green chalkboard that reads 'LEVIES ARE FOR LEARNING'.

Bonds

Bonds are the primary method used by Washington school districts to finance major capital projects because funding is generated upfront, and repayment is spread over time. Districts sell bonds to investors and repay them over 10 to 40 years. Total bonds cannot exceed 5% of the assessed value of taxable properties.

  • One of two types of Bonds school districts can seek:

    • Voter approved with a 60% supermajority yes vote, and must also meet the voter turnout requirement
    • New revenue created: repaid with property taxes based on assessed value
    • 40-year maximum term; must match useful life of asset

    • May only be submitted to voters twice in a calendar year

  • One of two types of Bonds school districts can seek to fund:

    • Board approved
    • Repaid with existing district revenue
    • Can't be used for new construction
    • A public hearing is required if more than $250,000

Levies

  • One of three types of levies school districts can ask voters to approve:

    • One to six-year collection cycle
    • To construct, modernize, or remodel school facilities, including technology improvements
    • Multiple capital projects levies may be authorized for the same period
    • If a capital projects levy fails, it may be resubmitted to voters only once in the same 12-month period

  • One of three types of levies school districts may ask voters to approve:

    • Four-year collection cycle
    • Bridges the gap between what the state provides based on the Prototypical Funding Model and the actual cost of running schools
    • To support programs, staff, and services that the state does not fully fund under 'basic education'
    • Revenue cap is based on the assessed value of taxable properties in the District or the maximum pupil limit from the state
    • Formerly called a Maintenance & Operations Levy

  • One of three types of levies school district may ask voters to approve:

    • Two-year collection cycle
    • Funds buses or major repairs to buses

Levies are short-term voter-approved local property taxes. As district revenue boosters, levies do not accumulate interest. As more homes and businesses are built to share the revenue increase, the property tax rate collected decreases. Typically lasting one to six years, levies require a simple majority, 50% + 1 vote, to pass.

Bond & Levy Q&A

Providing accurate, transparent and helpful information to our community is important to us. If you have a question you don’t see answered here, please drop us a line using THIS LINK and we will get you the information you want. 

  • A levy rate is the amount of property tax per $1,000 of assessed property value to fund a voter approved levy amount. A levy rate of $1.00 means that for every $1,000 of property value, the owner of the property will have to pay $1.00 in taxes.

    • Example: If a homeowner has a home valued at $200,000 and the levy rate is $1.00 for every $1,000 of assessed property value, the homeowner will pay $200 annually in property taxes.

  • Depending on the type of levy (enrichment, capital (including tech), or transportation), voters can approve levies for one to six years. After the allotted number of years, the levy expires. Districts may then go back to their voters and ask for a continuation, or replacement levy.

    Depending on the type of levy (enrichment, capital (including tech), or transportation), voters can approve levies for one to six years. After the allotted number of years, the levy expires. Districts may then go back to their voters and ask for a continuation, or replacement levy.

  • Yes! Washington State law provides two tax benefit programs for senior citizens and individuals who are disabled: property tax exemptions and property tax deferrals. For more information on qualifications, please contact your local county assessor's office,