School District seeks $4M credit line for cash flow management

The School Board of Wisconsin is poised to make a significant financial decision regarding its cash flow management. During the Business, Operations, and Finance Committee meeting on June 3, 2025, board members discussed a potential request to utilize a $7 million line of credit to address cash flow challenges that arise during the school year.

The discussion highlighted the need for up to $4 million from this line of credit between July 1 and October 31, as the district experiences fluctuating cash inflows while still needing to meet monthly payroll and accounts payable obligations. Board members emphasized the urgency of making this decision before the line of credit expires on June 30, which would require reapplication if not utilized.

A key point raised was the strategy of investing any borrowed funds that are not immediately needed, allowing the district to take advantage of higher interest rates. The district's financial team assured members that investments would be carefully timed to ensure liquidity when funds are required. Additionally, there are no prepayment penalties, allowing the district to repay borrowed amounts as soon as it receives its first equalization aid payment in September.

This proactive approach to cash flow management reflects the district's commitment to financial stability and effective resource allocation, ensuring that educational operations can continue smoothly throughout the year. The board's decision on this matter is expected to be finalized before the end of June, setting the stage for the upcoming school year.