The Budget Document

There are two main divisions in a school budget: revenue (money available to spend) and expenditures (how money is spent). The principal subdivisions under these categories are: current or operating expenditures, capital outlay, debt service, transfers to other funds or governmental agencies and unappropriated ending fund balance. (ORS 294.305 to 294.565)

School budgets are organized under these categories by program. Programs are groups of activities related to a specific school program or service. [Sample budget forms]

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Current Expenditures

Current or operating expenses are listed under General Fund. These include items such as salaries, materials, maintenance, utilities, insurance and interest payments on short-term loans.

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Capital Outlay

Capital outlay includes expenditures for land or existing buildings, improvement of grounds, construction of buildings, additions to buildings, remodeling of buildings, initial equipment, additional equipment and replacement of equipment.

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Debt Service

Debt service is for long-term financing. Debt service is a separate fund and is used to finance and account for the payment of interest and principal on all general obligation bonds. Districts must have voter approval of a general obligation bond levy to sell bonds. (See section on Bond Levies.) Bond issues are used to finance major new construction or remodeling in a district. The proceeds from bond sales can be used only for the projects specified on the ballot or authorized in Article XI, Section 11 and 11b, of the Oregon Constitution.

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Transfers

Transfers are money moved from one fund to another. Transfers are shown as expenditures in the originating fund and revenue in the receiving fund.

Oregon school budgets also may contain separate sections for capital projects, federal programs including the school lunch program and student body activity accounts.

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