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School committee authorizes superintendent to seek up to $6 million short-term loan to cover July cash shortfall
Summary
The Whitman-Hanson Regional School Committee voted to authorize the superintendent to start procurement for a revenue anticipation note (RAN) of up to $6,000,000 to bridge a projected July cash shortfall caused by timing of state and town assessments and large summer payrolls.
The Whitman-Hanson Regional School Committee on May 20 authorized the superintendent to begin procuring a revenue anticipation note (RAN) of up to $6,000,000 to cover an anticipated July cash shortfall.
District business manager Matt Wells told the committee the timing of town and state assessments leaves the district roughly $6 million short in July, before revenues arrive in August. “We are anticipating we are moving forward with a $6,000,000 request,” Wells said, explaining the borrowing would bridge payroll and assessment obligations until receipts arrive.
The committee’s move came after a discussion of alternatives and costs. Wells said the district plans a 90-day note to match the timing of incoming funds and that interest rates will be determined through procurement; he gave an illustrative range for short-term interest costs and noted prior notes had run much higher. Members asked whether towns could advance their assessments to avoid borrowing; staff said the regional agreement sets assessment due dates and that town timing and tax cycles make an early, guaranteed advance unlikely.
Chair Ryan Tressel put the motion to a vote. A member moved to authorize the superintendent to start the procurement for a RAN up to $6,000,000; the motion was seconded and the committee approved it in a recorded voice vote with nine members voting in favor (one member was not able to vote). The superintendent said staff will solicit bids and, if a lower amount or better rate is available, the district can accept the better terms.
Why it matters: The RAN is a cash‑management tool, not new ongoing debt. Wells said the note is intended to be paid off when state and town assessments arrive in late summer, but the committee was clear it will include the borrowing cost in future budgets if the district proceeds. Members stressed the longer-term priority of rebuilding reserves and addressing the structural budget issues that led to the current timing pressure.
What’s next: Staff will proceed with the procurement process, report back on bids and rates when available, and include any estimated interest costs in the FY28 budget development.
