Capital Vs. Operational: What Is The Difference?
The district's budget has several different funds; each fund has rules about how the money in the fund can be spent. Two of the major funds in the district's budget are capital and operating.
Operating (General) fund-The operating, or general, fund provides most of the funds used for the day to day operations of the school district. The salary and benefits of most employees are paid from the operating fund, as well as overhead expenses such as electricity, materials and supplies for classrooms, and contracted services. The money in the operating fund comes mainly from the Florida Education Finance Program (FEFP), the state's formula for calculating money that goes to school districts. FEFP funds are generated from local property taxes and state revenue.
Capital fund-The capital fund is used to build and maintain District buildings and purchase furniture, buses, technology, and other equipment, as well as payment of debt. Money in this fund comes mainly from local property taxes, impact fees, and revenue received from the state. Because money in this fund is specifically allocated to build or maintain capital assets, salaries generally cannot be paid using this funding source.
The GROWING Need