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Milan Area Schools board authorizes up to $2.1M borrowing against anticipated state aid
Summary
The board authorized borrowing up to $2,100,000 for 2025–26 to manage uneven state aid timing; finance staff said December typically is the lowest cash month and actual borrowing will match cash-flow needs.
Milan Area Schools Board of Education — The board voted June 25 to authorize borrowing up to $2,100,000 against the district’s anticipated state aid for the 2025–26 fiscal year.
The measure, included as the borrowing resolution in attachment B, is a routine cash‑flow step the district takes because state aid and local tax receipts do not arrive evenly over the year. Krista Hendricks (finance staff referenced in the meeting) described a monthly and weekly cash‑flow calculation that identifies the district’s likely low point (usually December) and informs whether borrowing is necessary.
Board members said other Michigan districts use the same approach. Superintendent Brian Gierbaugh and assistant superintendent Ryan McMahon also explained that authorizing a borrowing ceiling does not mean the district will borrow the full amount; the district will borrow only as cash flow requires.
Next steps: Business/finance staff will monitor cash flow and, if needed, execute borrowing under the terms of the board resolution and report back to the board.
