At its March 10 meeting, the Community Unit School District 308 Board of Education discussed the possibility of issuing of Tax Anticipation Warrants (TAWs), in anticipation of tax collections levied for 2013.
The $10 million in warrants would cover the district’s cash-flow needs during the time of year when cash on hand is at its lowest.
In June the district will receive a large portion of its property taxes and pay back the TAWs in full.
“This is something that is done every year in order to ensure that the district is operating with the proper cash flow” said Associate Superintendent Dr. Paul O’Malley. “It is a regular, normal occurrence for many school districts in order to ensure financial best practices.”
District 308 receives lump-sum payments in June and September from local real estate taxes. General State Aid (GSA) payments, which are smaller than monies received from property taxes, are received in two equal payments each month.