Bethlehem Area SD finance committee flags December cash‑flow squeeze; considers revenue anticipation note and reserve changes
October 14, 2025 | Bethlehem Area SD, School Districts, Pennsylvania
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The Bethlehem Area School District Finance Committee met Oct. 13, 2025, and heard from finance staff that the district’s cash balance — projected at about $109,000,000 in October — will decline sharply after November and could fall to less than two months of operating expenses by December.
“At this point in time, we’re gonna be okay. But come December, we have less than 2 months of expenses left,” said Mr. Rysakasian, finance staff, summarizing the committee’s cash‑flow projection and a spreadsheet showing monthly declines of roughly $30 million after November.
Committee members discussed three short‑term options: (1) a state debt intercept, under which the state would pick up bond payments; (2) a revenue anticipation note (often called a TRAN) issued on a drawdown basis; and (3) uncommitting portions of the district’s committed general fund balance. Rysakasian cautioned that a state debt intercept could be viewed unfavorably by bondholders and that a TRAN would typically take about 60 days to implement. “Generally, that takes 60 days to fully implement,” he said.
Staff described the TRAN option as a drawdown line of credit: the district would pay costs of issuance up front and then draw — and pay interest — only as needed. They said PFM (a municipal financial advisor) has an RFP ready and could solicit bids quickly; staff estimated a realistic timeline of about 45 days to set up a TRAN and said the committee would be asked to consider a resolution in November if the district chose that route.
Discussion also covered the district’s committed reserves. Staff said about $44,000,000 of reserves are currently committed to capital repairs and projects (including Babbitts construction), and uncommitting that money to cover operating needs would risk delaying summer projects and other capital work.
Staff additionally reviewed the district’s bond calendar: the district expects to go to market for a second round of financing in early 2026 for a second phase tied to ongoing construction; delaying that issuance was described as an option but not a certainty. Committee members set several items for the Oct. 20 regular board meeting agenda, including PlanCon K and a series of service and capital items.
The finance staff said the best long‑term solution to the cash‑flow problem is passage of the Pennsylvania state budget, and that staff will continue to monitor collections and present options to the board if conditions worsen.
“At this point in time, we’re gonna be okay. But come December, we have less than 2 months of expenses left,” said Mr. Rysakasian, finance staff, summarizing the committee’s cash‑flow projection and a spreadsheet showing monthly declines of roughly $30 million after November.
Committee members discussed three short‑term options: (1) a state debt intercept, under which the state would pick up bond payments; (2) a revenue anticipation note (often called a TRAN) issued on a drawdown basis; and (3) uncommitting portions of the district’s committed general fund balance. Rysakasian cautioned that a state debt intercept could be viewed unfavorably by bondholders and that a TRAN would typically take about 60 days to implement. “Generally, that takes 60 days to fully implement,” he said.
Staff described the TRAN option as a drawdown line of credit: the district would pay costs of issuance up front and then draw — and pay interest — only as needed. They said PFM (a municipal financial advisor) has an RFP ready and could solicit bids quickly; staff estimated a realistic timeline of about 45 days to set up a TRAN and said the committee would be asked to consider a resolution in November if the district chose that route.
Discussion also covered the district’s committed reserves. Staff said about $44,000,000 of reserves are currently committed to capital repairs and projects (including Babbitts construction), and uncommitting that money to cover operating needs would risk delaying summer projects and other capital work.
Staff additionally reviewed the district’s bond calendar: the district expects to go to market for a second round of financing in early 2026 for a second phase tied to ongoing construction; delaying that issuance was described as an option but not a certainty. Committee members set several items for the Oct. 20 regular board meeting agenda, including PlanCon K and a series of service and capital items.
The finance staff said the best long‑term solution to the cash‑flow problem is passage of the Pennsylvania state budget, and that staff will continue to monitor collections and present options to the board if conditions worsen.
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