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District finance update: no state appropriation yet; administration preparing for possible short‑term borrowing
Summary
With the state still finalizing the budget, district finance staff said they are preparing paperwork for a possible line of credit or tax revenue anticipation note and have preliminary lender interest of about $30 million.
Director Orr and district finance staff told the committee on Oct. 6 that the state has not yet approved the appropriation and the district is preparing contingency financing paperwork if required.
Administration said it has met with its financial adviser and primary bank; the bank used the district cash‑flow materials to produce a preliminary figure — about $30 million — for a potential short‑term borrowing facility (described in discussion as a revenue‑anticipation loan or line of credit). Staff said the paperwork and solicitor review typically take several weeks to complete and that any borrowing would be presented to the board for approval.
Finance staff emphasized the district’s need to be frugal while the state appropriation remains unresolved, noting that borrowing would add interest costs and that charter funding cannot be disbursed to charter schools until state appropriations are made.
Board leaders said they are closely monitoring the situation and that administration will return to the board with formal financing terms if the state budget remains unsigned.
