As JCPS continues construction projects across the District, we’re breaking down the difference between the District’s two primary funds: the Construction Fund and the General Fund. These funds have distinct purposes, legal restrictions, and a one-way relationship.
The Construction Fund
The Construction Fund can only be used for long-term investments in our buildings.
Purpose: JCPS utilizes the Construction Fund for new construction and major renovations that are financed by issuing bonds, which are then repaid over a long period of time.
Sources: The District is required to allocate $58 million in property taxes to this fund each year. Additionally, the Kentucky Department of Education provides $8 million to this fund each year through the Support Education Excellence in Kentucky (SEEK) formula.
Current Status: The District's Construction Fund and its bonding capacity are considered stable and in good standing.
The General Fund
The General Fund is the District’s other primary source of funding used for its overall operations. Crucially, it must cover maintenance and facility expenses that are not eligible for capital funding.
Maintenance Allocation: A portion of the General Fund is earmarked explicitly for these types of expenses, referred to as Annual Facilities Improvement Funds (AFIF).
Sources: The general fund is supported by Property Tax revenue, Occupational Tax revenue, SEEK and other much smaller sources.
Excluded Projects: Construction funds cannot be used for many necessary maintenance items, which must then be paid for by the General Fund. These items include:
Paving
Window replacement
Drainage work
Concrete repair
Maintenance on administrative buildings, bus compounds, and the Nutrition Service Center.
A One-Way Relationship
One of the most significant differences between the two funds lies in how money can be moved between them:
✅ General Fund to Construction Fund: The General Fund can supplement the Construction Fund.
❌ Construction Fund to General Fund: The Construction Fund cannot transfer money to the General Fund.
Money in the Construction Fund is legally locked in and cannot be used to pay for general operational expenses, such as teacher salaries or programs. Therefore, the availability of funding for current construction projects does not reflect the separate financial health or current liquidity of the General Fund.