Late state payments force District 200 to borrow

With the state owing it more than $6 million, Wheaton Warrenville Unit District 200 must do something it hasn't done in a long time: borrow money to pay its bills.

District 200 school board members on Wednesday agreed to take out $6 million in tax-anticipation warrants, essentially using future revenue to pay for expenditures in the month of May.

The short-term loan will be repaid in June after the district receives more local property tax revenue. Getting the loan will cost District 200 about $5,700 in interest and up to $8,500 in legal fees, officials said.

Bill Farley, District 200's assistant superintendent of business operations, said the loan is necessary because the state owes the district more than $6 million in categorical funding for programs such as special education.

"If that money was sitting here as it normally came in, we would not be having this action tonight," said Farley, adding there's concern the amount the state owes could climb to $10 million.

Acting Superintendent Charles Baker said the last time the district had to issue tax-anticipation warrants was in the mid-1980s. "So this is not a first for the district," he said, "but it's been a long time."