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Racine Unified to seek renewal of $10 million short-term line of credit for cash-flow
Summary
Superintendent and board discussed a resolution to renew a taxable tax- and revenue-anticipation promissory note (TRAPN) with Johnson Bank not to exceed $10,000,000 to cover short-term payroll or cash‑flow gaps; the measure will be scheduled for a vote at the Oct. 20 business meeting.
Superintendent Christopher Gajewski told the Racine Unified School Board on Oct. 6 that administration will present a resolution to renew a taxable tax- and revenue‑anticipation promissory note (TRAPN) with Johnson Bank in an amount not to exceed $10,000,000 to cover short‑term cash‑flow needs.
The TRAPN would be a temporary line of credit the district could draw on in periods when state aid timing or an unexpected emergency could leave the district short of funds for payroll or other immediate obligations.
“This would just cover us for the period of time…if short term if we didn't have the funds needed to do payroll,” Gajewski said when board members asked for a brief explanation of the instrument.
Board members noted this is a routine annual practice. No motion was taken at the Oct. 6 work session; the resolution is slated for the business meeting on Oct. 20 where the board will vote on authorizing the note.
Because the TRAPN is a short‑term borrowing instrument, board discussion focused on clarifying its purpose as a cash‑flow tool rather than a new long‑term obligation. No other budget details or bank terms were discussed at the work session.
The district will return to the board with the resolution and formal vote at the Oct. 20 business meeting.
