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Southampton board authorizes up to $20M TAN, approves reserve transfers after business office flags $11M state shortfall
Summary
Facing near‑term cash‑flow pressure and a delayed Shinnecock contract the district says leaves it owed about $11 million, the board approved transfers from fund balance and authorized tax anticipation notes up to $20 million to manage operations.
The Southampton Union Free School District board voted to authorize tax anticipation notes (TANs) of up to $20 million and approved a package of reserve transfers after the assistant superintendent for business reported the district is experiencing near‑term cash‑flow pressure.
The assistant superintendent for business said the state has not executed a Shinnecock Native American contract for two years and that “the state owes the district approximately 11 million dollars.” He described annual cash‑flow timing that requires borrowing between July and December and noted the district had taken earlier short‑term borrowing this year; he said the district will also use available reserves and cash on hand to operate while seeking state funds.
On the board’s motion the district adopted a fund balance and reserves plan for June 30, 2026. The resolution authorized transfers from available fund balance, including up to $4,000,000 to the 2017–2027 capital reserve, $500,000 to the capital reserve for technology equipment, $500,000 to a workers’ compensation reserve, $500,000 to an Employees’ Retirement System (ERS) reserve, $500,000 to the Teachers’ Retirement System (TRS) reserve, and $1,250,000 to the repair reserve, among other listed allocations. The board approved the TAN authorization (not to exceed $20 million) to bridge tax receipt timing for the 2026–27 fiscal year.
The board also approved other financial and personnel agenda items as presented and approved the consent agenda and minutes for the June 2 meeting. A separate consent vote approved item 12.01: the board denied a student suspension appeal (this item was discussed in executive session) and authorized the board president to notify the family.
Roll‑call votes were recorded for the second reading of Policy 5405‑R (health and wellness regulation), the reserve transfers, TAN authorization, the consent agenda, personnel actions and minutes; the roll calls shown in the record register unanimous recorded 'Yes' votes for the members listed.
