As you know, a recent court decision has determined that no state apportionment
funds can be advanced to community colleges until a state budget has been enacted.
This represents a completely new challenge in that this has never happened before.
Since expenditures are ongoing, beginning on July 1 we will need to use other
district funds as well as borrowed funds if the budget is not passed soon.
Below I have outlined our contingency plan for cash flow and the anticipated amounts available:
1. General Fund Ending Balance $6,000,000
2. Building Fund Ending Balance $ 4,000,000
3. Tax and Revenue Anticipation Notes $ 5,000,000
4. County Treasurer Transfer of Funds (Loan) $ 21,500,000
TOTAL Available for Cash Flow $ 36,500,000
Although we hope that a budget will be enacted as soon as possible to avoid the cost of borrowing from the County Treasurer, I anticipate that enough cash flow options are available to bridge the gap until a budget is adopted.
Kenneth W. Fite
V.P. for Fiscal Affairs