School districts are required to establish specified funds, for example:
School districts must establish a depreciation subfund to reserve funds for future facility and equipment needs. Up to 2 percent of a school district's general fund may be deposited each fiscal year into the depreciation subfund for the purpose of preventative maintenance or emergency facility needs.
The preventative maintenance must be necessary to realize the originally anticipated useful life of a building or facility and includes: exterior painting of facilities; replacement or renovation of roofing, exterior walls, windows, heating, air conditioning and ventilation systems, floor coverings in classrooms and common areas, and electrical and plumbing systems; and renovation of playfields, athletic facilities, and other district real property.
School districts, subject to applicable public works bid limits, may use school district employees to perform preventative maintenance with moneys from the depreciation subfund, but moneys from the depreciation subfund may not be used for employee compensation that is unrelated authorized subfund uses.