GEORGETOWN — For the second time in six months, school officials have voted to issue tax-anticipation warrants — money that will be borrowed from a bank and then repaid as tax revenues are received by the district.
Georgetown-Ridge Farm school board members voted this week to issue $1 million in warrants to help cover a revenue shortfall caused by some late state payments. The money is needed now to help the district meet its three payrolls and a large insurance payment in March — totaling about $800,000.
"We have some financial challenges we are working through this year on our way to becoming more financially stable," Superintendent Jean Neal said.
In December, the school board voted to address a $1.1 million deficit in the $10 million district budget by approving a 14.03 percent increase to the tax levy, and voting to close Ridge Farm Elementary School at the end of the 2012-13 school year.
Neal said that although general state aid payments are arriving on time, the state is late in paying the district for categoricals like transportation, special education and early childhood education.The late payments are causing a cash shortfall for the district, and she does not know when to expect the payments.
The district will receive the $1 million from the First National Bank in Georgetown, and will repay it at 3 percent interest as local property taxes are received by the district.