Los Angeles County Board of Supervisors approved funds Tuesday for the Sulphur Springs Union School District, officials said.
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Sulphur Springs Union School District officials requested the supervisors approve tax and revenue anticipation notes for $2.4 million, according to the Board of Supervisors agenda item.
Under Government Code Section 53850, public schools governed by the state of California can borrow money while they wait for the state to issue allowances.
“We have to meet payroll. The county would issue a short-term bond that has to be repaid at the end of the one year term,” said Kerry Clegg, president of the SSUSD Board of Trustees. “It’s standard issue. We’ve requested one every year for probably the last 25 years.”
The request, officially titled Sulphur Springs Union School District 2014-15 Tax and Revenue Anticipation Notes, is common among school districts across the state, Clegg said. They are designed for school districts to meet cash flow needs until the next apportionment from the state.
The district’s governing board members adopted the request on Dec. 10, 2014, according to the agenda. This will have no fiscal impact on the county budget.
The district officials must pay back the funds over the course of a maximum of 13 months, according to the agenda. An interest rate will be determined.
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