Colorado State Treasurer Dave Young has announced the sale of $560 million in short-term notes to provide interest-free loans to 21 school districts across Colorado. The move is designed to help these districts manage cash flow gaps until they receive property tax revenue later in the 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 program, known as Education Tax Revenue Anticipation Notes (ETRANs), allows the Colorado Department of the Treasury to issue short-term debt under state law. ETRANs are issued twice annually and offer K-12 school districts access to interest-free loans for operational costs while waiting for local property taxes.
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 each district borrowing separately—often at higher rates—the state’s approach reduces overall costs and directs more funds toward classroom expenses.
Chuck Carpenter, Chief Financial Officer of Denver Public Schools, commented, “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 21 school districts receiving support from this issuance include 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.
All ETRANs must be repaid within the same fiscal year. The latest issuance received top ratings from both Standard and Poor’s and Moody’s Investors Service.
More information about ETRANs can be found on the Colorado Department of the Treasury website.
