Bonds qualified by the State Treasurer provide school districts with:

• Access to the State's credit rating; which will usually result in a lower interest rate and cost.
• Ability to borrow for the principal and interest requirements of outstanding qualified bonds (subject to a minimum debt millage).

A school district that seeks State qualification of its bond issue is required to file a preliminary qualification (PQ) application. The PQ application is the mechanism to seek preliminary qualification. Prior to completing the PQ application, a district should conduct a thorough study to determine facility needs and gauge the level of support that exists within the community.

School district bond elections must be held in accordance with Public Act 166 of 1954 (MCL 408.551-408.558), more information can be obtained from the school district's legal counsel.

If a majority of the district's citizens vote in favor of the proposition, the district applies for final qualification.

Once an Order Qualifying Bonds is issued the district can proceed to sell the bonds to prospective investors.

The School Loan Revolving Fund (SLRF) is a self-sustaining fund that makes loans to school districts to assist with making debt service payments on state qualified bonds issued under the School Bond Qualification and Loan Program. Any money repaid by school districts on loans made by the SLRF are deposited back into the fund for future use.

In order to borrow from the state for debt service needs the district must:

• Have the bond issue qualified.
• Levy a minimum of 7 debt mills.

School Loan Revolving Fund participants must submit a board authorized application due annually every August 1.