Wapanucka Public School

Understanding the Building Fund in Oklahoma School Finance

What is the Building Fund?

• Definition:
  • A dedicated fund used for maintenance, repairs, and improvements of school facilities.
  • Authorized by Oklahoma law to ensure school districts maintain safe and functional facilities.
• Purpose:
  • To support facility upgrades, equipment purchases, and other capital improvements that benefit students and staff.

How is the Building Fund Funded?

• Primary Sources:
  1. Local Revenue: Ad valorem (property) taxes, limited to 5 mills.
  2. Interest Earnings: Income generated from the investment of building fund balances.
• Voter Approval:
  1. No voter approval required for the 5-mill levy.
  2. Additional levies for facility improvements may require voter approval through bond elections.

What Can the Building Fund Be Used For?

• Allowed Uses:
  1. Repair, maintenance, and improvement of buildings and grounds.
  2. Purchase of furniture, fixtures, and equipment.
  3. Payment of utility services and insurance premiums.
  4. Acquisition of property and construction of facilities.
• Prohibited Uses:
  1. Cannot be used for salaries, instructional materials, or operational expenses.

Legal Framework

• Oklahoma Statutes:
  • Title 70, Section 1-117: Governs the management and allowable uses of the Building Fund.
• Oklahoma Constitution:
  • Article 10, Section 10: Authorizes the levy for the Building Fund and outlines its limits.

Budgeting and Spending

• Annual Budget Process:
  • Board approval required for expenditure plans.
  • Funds must be allocated according to legal requirements and district facility needs.
• Fund Balances:
  • Unused funds may be carried forward but must remain dedicated to capital and facility projects.

Compliance and Accountability

• Oversight:
  • School board reviews and approves all building fund expenditures.
• Auditing:
  • Annual audits conducted by the State Auditor and Inspector’s Office to ensure compliance.
• Transparency:
  • Public reporting of building fund usage to maintain stakeholder trust.

Key Takeaways

• Purpose: Supports facility maintenance and improvement.
• Revenue Sources: Primarily from local property taxes.
• Compliance: Subject to strict oversight and legal compliance.

Questions

• Contact amcreynolds@wpss.k12.ok.us or OKSDE school finance website section