District 301 needs short-term loan

Just as larger districts are struggling to meet payroll and other payments due to the state’s financial problems, Central Unit District 301 also may be forced to take out a short-term loan.

But while districts like Community Unit District 300 need $19 million in tax anticipation warrants to pay personnel, the Burlington-area school board Monday night will approve a resolution for $3.5 million in short-term loans.

Tax anticipation warrants are loans that the district will repay after it collects property tax distributions from Kane County in June. The district, which has about 3,100 students, has not taken out tax anticipation warrants in at least three years, Assistant Superintendent Greg Rabenhorst said.

“We don’t anticipate needing to use all of that, but we want to make sure we have the ability to issue that much if we need to,” Rabenhorst said. “It will be used to cover the education fund and transportation fund. We would probably need to use the funds by the end of April or early May.”

The amount of money the district would need to borrow is contingent upon the state making categorical payments for programs such as special education and transportation.

The district has not received a categorical payment from the state this fiscal year, Rabenhorst said. The district has, however, been receiving general state aid.

The school board meets at 7 p.m. at Burlington Central High School, 44W665 Plato Road, Burlington.