PORTER TOWNSHIP | The Porter Township School Corp. board on Monday gave Superintendent Nick Brown approval to seek tax anticipation warrants if necessary to maintain the district's cash flow. (Source: NWI Times)
The borrowing is a normal annual occurrence as school corporations await payment of state and county tax monies.
The state approved the district's 2008 budget last week, Brown told the board, freeing the way for payment of state tuition support funds. But when those funds would arrive was uncertain, Brown said, prompting him to seek borrowing power if necessary.
Brown said he would probably know by midweek how much the district might need to borrow from the Indiana Bond Bank and at what interest rate that would be.
Tax revenue payments from the county were not expected until late in the year, which would also factor into the district's borrowing needs, Brown said. Semiannual county tax payments have been delayed in recent years, prompting many school districts to seek a second round of tax anticipation warrants in a year to pay bills until the funding comes in.
Brown said he didn't feel the nation's financial crisis would affect the district's ability to obtain a loan, but he was unsure whether it would have an effect on interest rates.
Many county municipal entities will be forced to use tax warrant borrowing this fall, quite a few of our clients are doing so, as assessments and budgets are being approved for 2008 on a drastically delayed schedule.