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Franklin Pierce board approves interfund loan and seeks $1.5 million apportionment advance from state
Summary
The Franklin Pierce board unanimously approved an interfund loan resolution authorizing up to $2 million and a separate petition asking OSPI for a $1.5 million apportionment advance to ease an expected March cash shortfall, staff said. The move follows correction of a fund-balance reporting error and aims to cover timing gaps in receipts.
The Franklin Pierce School District board on Monday unanimously approved short-term finance measures intended to ease an expected cash shortfall in March.
At the meeting the board adopted Resolution 26R01, which staff described as authorizing an interfund loan to the general fund for up to $2,000,000, and then approved Resolution 26R02, a petition to the Office of Superintendent of Public Instruction (OSPI) asking for an apportionment advance. Staff said the district plans to request about $1.5 million to cover its largest projected monthly gap.
“ This resolution is allowing the district to borrow up to 2,000,000, ” said the board director who briefed the item, explaining the authority is to address cash-flow timing rather than long-term borrowing. Finance staff and board members discussed differences between the district’s ending fund-balance accounting and OSPI’s net-cash apportionment calculation, and noted county revenue reports arrive on a lag that can create interim shortfalls.
Board members asked how the requested amounts were calculated. Staff described a projection that shows the hardest gap in March and said the apportionment advance—if granted—would likely be repaid when larger property-tax apportionments arrive in June and August. Staff also said they would send OSPI a list of unforeseen expenses to support the advance request.
Officials emphasized this is a timing and cash-management step, not a permanent revenue solution. One board member noted that if a district ends the year with a negative fund balance, OSPI can impose binding conditions; staff said the district is projected to end the year with a positive fund balance but still needs short-term relief.
The measures passed unanimously after brief discussion.
What happens next: staff will submit the formal apportionment-advance request and the list of unforeseen expenses to OSPI and continue to monitor cash flow; board members said they will schedule budget reporting and work sessions if directors want more detail.
