As part of ECSD’s Budget & Funding Overview, we are continuing to share information to help families, staff, and community members better understand how school funding works under Nevada’s Pupil-Centered Funding Plan (PCFP). One of the most common questions we receive is about the difference between General Funds and Restricted Funds, and why certain dollars cannot be used interchangeably.
General Fund: Core Operating Support
The General Fund provides the primary financial support for the day-to-day operation of the Elko County School District. Under the PCFP, these dollars are generated through a base per-pupil funding amount established by the State of Nevada for each school year.
General Fund dollars are used to support essential district operations, including:
Employee salaries and benefits
Classroom instruction and instructional materials
Student services and basic school operations
While the General Fund is the district’s most flexible funding source, it is still governed by state law and district policies to ensure funds are used responsibly and in support of student learning. Portions of the General Fund may also support other accounts, but all expenditures must meet legal and accounting requirements.
Restricted Funds: Purpose-Specific Dollars
Restricted Funds are allocated for clearly defined purposes and must be used exactly as intended. These dollars cannot be shifted to cover General Fund needs, even during times of financial strain.
Common examples of Restricted Funds include:
Student-specific weighted funding. Additional funding is generated for students who require extra support, such as:
English Language Learners
Students from low-income households
Students with disabilities
Gifted and talented students
These funds must directly support programs, services, or staffing connected to those student needs.
State and federal grants or categorical programs
Funding such as Title I or special education grants is restricted to specific goals, services, or outcomes outlined by law or grant agreements.
Rules That Govern How Funds Are Spent
Nevada law—including Nevada Revised Statutes (NRS) Chapter 387 and the Nevada Administrative Code—establishes strict guidelines for how both General and Restricted Funds may be used.
Oversight and accountability include:
Detailed reporting requirements to show how funds are allocated and spent
State-issued business rules and internal controls to guide appropriate use
Monitoring and audits to ensure compliance with state and federal requirements
These safeguards are in place to protect public funds and ensure dollars are used to support students as intended.
Why This Matters
Understanding the difference between General and Restricted Funds helps explain why school districts cannot simply move money from one account to another when challenges arise.
General Funds support the core educational experience for all students and help keep schools operating each day.
Restricted Funds support specific student populations, programs, and long-term needs such as facilities, transportation, nutrition services, grants, and debt obligations. These funds are legally limited and cannot be redirected to cover general operating expenses.
Even within the General Fund, some dollars are designated for specific purposes and cannot be repurposed freely.
Knowing how these funding rules work provides important context for budget discussions and helps our community understand the financial decisions ECSD must make to remain compliant while supporting students across a large, rural district.