Understanding M&O and I&S Funding

School district funding is divided into two main categories:

• Maintenance & Operations (M&O): This funds day-to-day expenses such as teacher salaries, utilities, classroom supplies, and maintenance. It is primarily funded through state and local property taxes and is subject to state-imposed tax rate limits.

• Interest & Sinking (I&S): This funds major capital improvements, such as new buildings, facility renovations, and infrastructure upgrades. I&S funds come from voter-approved bonds and cannot be used for salaries, utilities, or general operating expenses.

Our upcoming bond proposal focuses on critical facility improvements and student resources that cannot be covered by M&O funds alone.

Blooming Grove ISD’s Bond History & Comparison to Similar Districts

The last voter-approved bond in Blooming Grove ISD was in 2003. That year, a $3 million bond was passed to support key facility improvements. In 2016, this bond was refinanced to allow for further upgrades while maintaining financial efficiency.

We are extremely excited to announce that with a final payment toward the previous bond, Blooming Grove ISD will be debt-free moving into the future. This is a huge accomplishment that allows our district to engage in strategic future planning while maintaining financial stability. Compared to similar districts, Blooming Grove ISD has used a conservative approach to bond usage.

Past Projects Funded Outside of Bond Money

In addition to careful bond management, Blooming Grove ISD has successfully completed several major projects using insurance funds, district reserves, and grants, including:

• Complete remodels of the High School, Junior High, and Elementary School due to weather-related damage, fully covered by insurance funds.

• A full HVAC overhaul at the High School to improve energy efficiency and climate control for students and staff.

• Athletic facility improvements, including upgrades to the High School baseball/softball complex and track.

• Safety and security upgrades, funded entirely through grants, including:

  • Secured vestibules on all campuses to enhance entry-point security.

  • New perimeter fencing to better control campus access.

  • Advanced camera systems to improve campus monitoring and safety.

These projects were accomplished without the need for additional taxpayer funding, demonstrating our district’s commitment to maintaining and improving facilities while being financially responsible. However, large-scale renovations and new construction require bond funding due to their high costs.

The Impact of Inflation on School Funding

Inflation has significantly increased the cost of materials, labor, and transportation, making it more expensive to maintain and improve our schools. While inflation has increased, the student allotment that districts receive from the state has not increased since 2019. These two factors have made future planning difficult for districts across the state. 

Moving Forward Together

As we continue to invest in the future of our students and community, we encourage you to stay informed and engaged. Transparency and community input are at the heart of every decision we make. We appreciate your support and commitment to ensuring the best educational experience for our students.

For more details on the bond proposal and how it impacts our district, please visit the bond website at www.bgisdbond.com

Thank you for your continued dedication to our schools and students.