Colorado State Treasurer Dave Young has announced a $560 million sale to provide interest-free loans to 21 school districts in Colorado. The move is intended to help these districts address cash flow gaps until the end of the school year.
“Many school districts do not receive property tax revenue until later in the year,” said Colorado State Treasurer Dave Young. “This funding fills a temporary gap so classrooms can operate without disruption, enabling school districts to focus their budget on classroom needs.”
The state law allows the Colorado Department of the Treasury to take on short-term debt and offer interest-free loans through Education Tax Revenue Anticipation Notes (ETRANs). These notes are issued twice annually and support K-12 school districts as they wait for local property taxes to be collected.
James Eke, Debt Manager for the Colorado Department of the Treasury, stated, “ETRANs give school districts the flexibility they need for cash flow without pulling resources away from students. Issuing these notes at the state level allows us to deliver low-cost financing that saves schools money.”
Instead of seeking individual loans at higher interest rates, participating school districts access financing through the state, reducing costs and directing more funds into classrooms.
Chuck Carpenter, Chief Financial Officer of Denver Public Schools, said, “Denver Public Schools is very appreciative of Treasurer Dave Young and his team at the Colorado Department of the Treasury. Their leadership with the ETRANs program provides DPS with reliable cash flow throughout the year, allowing us to put our funds and focus where it is needed most: helping our students achieve their goals.”
The following 21 school districts will benefit from this round of ETRANs: Aspen School District RE-1; Bennett 29J; Boulder Valley School District RE-2; Cherry Creek (Arapahoe 5); Denver School District 1; Douglas County RE-1; Eagle County RE-50; Elizabeth School District; Englewood (Arapahoe 1); Estes Park (Larimer R-3); Gilcrest (Weld 1); Johnstown-Milliken (Weld RE-5J); Lake County (Leadville); Littleton (Arapahoe 6); Moffat County RE-1; Poudre (Larimer R-1); Roaring Fork (Garfield); Summit County RE-1; Thompson (Larimer R2-J); Windsor (Weld RE-4), and Woodland Park RE-2.
These notes must be repaid within the same fiscal year. The latest issuance received top ratings—SP-1+ from Standard and Poor’s and MIG 1 from Moody’s Investors Service.
More details about ETRANs can be found on the Colorado Department of the Treasury website.
