General Obligation Bonds (G.O. Bonds) - Definition & Meaning

General Obligation Bonds, often referred to as G.O. Bonds, are a type of municipal bond issued by state or local governments to raise funds for various public projects and initiatives, including those in the field of education. These bonds are backed by the full faith and credit of the issuing government entity, which means that the government commits to using its resources, including tax revenue, to repay bondholders.

In the context of education, G.O. Bonds are often used to finance the construction, renovation, or improvement of school facilities, such as school buildings, classrooms, libraries, and sports facilities. These bonds provide a source of capital funding for educational infrastructure projects.

G.O. Bonds are typically repaid over a specified period, often through property taxes or other revenue sources designated for debt service. Voters in the issuing jurisdiction may need to approve the issuance of G.O. Bonds through a ballot measure.

These bonds play a significant role in funding capital projects for educational institutions and other public facilities, helping to ensure that students have access to safe and modern learning environments.