Connellsville Area SD seeks rates for tax‑anticipation note as state budget remains unresolved

The Connellsville Area School District board approved a request to solicit rate quotes for a tax‑anticipation note as a precaution while the Pennsylvania state budget remains unresolved.

Miss Ronson, representing the district business office, told the board that because the state has not passed a budget the district is not receiving state or federal funds and is relying on local revenues and its fund balance. “So the tax anticipation note is a loan that a district would take out, with anticipation of receiving revenues from the state or from local taxes,” she said. She said the board would review rates before any loan execution and the district would not take money or incur interest unless it becomes necessary.

Board discussion clarified that the district’s audited fund balance was described in the meeting as “close to 23,000,000,” but that cash on hand differs from the audited fund balance and the district expects to monitor monthly cash. Miss Ronson said the district could exhaust available cash later in the calendar year — likely November or December — if state funds are not released.

The board authorized staff to solicit quotes so that rate information would be available at a future meeting; the board would have to approve any execution of a note. No dollar amount for a finalized note or a lender was approved at the meeting.

The finance discussion was framed as a contingency: officials said they hoped the state would approve and release funds and that the solicitation of rates was a precaution to ensure the district could cover payroll and operations if disbursements are delayed.