School bond and tax elections in Tennessee
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School bond and tax elections in Tennessee are not required in the State of Tennessee as its one of a few states that does not mandate ballot questions to approve new bonding or to extend bonding. Also, ballot questions are not required for tax levy limits in the State of Tennessee.
Laws affecting school finance
Tennessee bond issue law
In Tennessee, the issuance and approval of new bonds comes at the approval of county governments in where the school district is located. In Tennessee, all bonds must be sold at ninety-eight (98%) percent of its value or higher. The bonding must be approved by a majority of the members of the county government where the school district is located. All bonds are exempt from any taxation in the State of Tennessee and must come with a zero (0%) percent interest rate with a maturity of 40 years from the date of issuance of the bonds[1].
All bonds in Tennessee must be approved by the Tennessee State Funding Board. This board takes into account the needs of a school district along with examining the school district's credit worthiness in terms of its current bond rating before a county government can issue a resolution calling for new bonding[2].
School bonds are put in a special school fund in the State of Tennessee. School districts are allowed to use bonds for construction of new school buildings, repairs and renovations of existing buildings, make payments on previous bond obligations, and judgments against a school district[3].
Also a separate bond for purchasing bonds is allowed in Tennessee. This will allow school districts to have bonds issued for purchasing new school buses. This can be done with other bonds, but the maturity rate allowed for school bus bonds is eight years from the date of issuance[4].
Tennessee levy law
Under Tennessee law, there are two mandated levy caps for school districts in the State of Tennessee. The first is general fund levy that covers all grades in the school district. The second levy cap is for transportation fund purposes for the respective school district. All levies must be certified on a quarterly basis by county government officials in the State of Tennessee. As part of the certification process, county government officials certifies that the levies are paid properly to the school districts and all state funding is accounted for[5].
External links
References
- ↑ "Michie Resources" Code of Tennessee(Referenced Statute 49-3-1002 (1)(a)-(d) Code of Tennessee)
- ↑ "Michie Resources" Code of Tennessee(Referenced Statute 49-3-1002 (1)(i)-(j) Code of Tennessee)
- ↑ "Michie Resources" Code of Tennessee(Referenced Statute 49-3-1004(a) Code of Tennessee)
- ↑ "Michie's Legal Resources" Tennessee School Bond Law(Referenced Statute 49-3-1006 Code of Tennessee)
- ↑ "Tennessee General Assembly" Tennessee School Levy Law(Referenced Statute 49-3-315 Code of Tennessee)
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