Bartholomew Consolidated Schools will have to borrow less money this year than anticipated to pay the district’s bills.
Tax money from the state only comes in twice a year meaning the district, like many government entities, takes out a tax anticipation bond every year to bridge the gap. This year, the school district expected to borrow $27 million until the end of the year, but based on its healthy cash balances, the formula used by the bond counsel reduced that to a loan of just under $21 million.
Vaughn Sylva, assistant superintendent for financial services for the district, explains:
Sylva said that unfortunately won’t turn into a savings, as the interest rate on the smaller loan was higher this year.