California State Treasurer Fiona Ma announced that the California School Finance Authority (CSFA), which she chairs, has launched a new, statewide pooled Tax and Revenue Anticipation Note (TRAN) financing program in support of K-12 school districts, county offices of education, and community college districts.
As part of the 2020-21 California budget, certain education funding apportioned to public school and college districts will be deferred, creating potential cash shortfalls for districts. In anticipation of the 2021 state apportionment deferrals, CSFA has created a new working capital TRAN program with the backing, support and institutional knowledge of the STO and myriad partners specializing in public school finance. A new website and application has been created and is located at: https://www.treasurer.ca.gov/csfa/k-14-trans/index.asp.
“The goal of the program is to provide financial relief in a simple and streamlined process that ensures on time delivery of TRAN proceeds,” said Treasurer Ma.
“This new program is part of our ongoing efforts to better serve all Californians, but especially those most at need during these challenging times,” said Katrina Johantgen, CSFA Executive Director.
There is no cost to districts to apply nor any obligation to proceed with the TRAN. Multiple issuances are expected, with the first TRAN to deliver proceeds in late November. CSFA will also offer a TRAN program for charter schools. The website for that program is currently being finalized and a separate announcement will be made when it is available.
The financing program was launched during an informational webinar with featured keynote speakers: State Treasurer Fiona Ma, CPA; former Superintendent of Public Instruction Jack O’Connell; Mike Fine from FCMAT; and John Gray from School Services of California. For a replay of the webinar, go to: https://www.treasurer.ca.gov/csfa/webinar-information.asp.
This article was released by the California State Treasurer’s Office.