The school district receives funding in two ways; Maintenance & Operations (M&O) and Interest & Sinking (I&S). Prior to 2005, all school districts were able to charge a tax rate of $1.50 and use those tax revenues as they saw fit (M&O or I&S). This allowed a lot of districts to save money and pay cash for large capital improvements. However, in 2005, the state changed the tax rate structure and set the M&O rate at $1.04 effectively. This, of course, reduced operating budgets for schools and put local taxpayers in more control of capital improvements. Essentially, if you want new buildings, you have to vote on it. The state recently lowered the M&O rate again, reducing it to $0.9630 for the 2020-2021 school year. The state effectively controls the M&O budget which does not allow the district to save more money.
I&S funds cannot be used for salaries and regular operating expenses. I&S taxes are the ONLY TAX DOLLARS THAT GO STRAIGHT TO LISD BOND PROJECTS. In short, the state controls M&O dollars, which no longer allows a district to save excess money and the state has no control over I&S taxes.
If the bond is not approved, the large capital improvements would not be funded.