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1.19.2022: Colorado Treasurer Dave Young Helps School Districts With Cash Flow Shortages

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For Immediate Release
Sheena Kadi
Communications Director & Public Information Officer

Colorado Treasurer Dave Young Helps School Districts With Cash Flow Shortages

Schools are able to make payroll for teachers and bus drivers

DENVER, COLORADO: Today, Colorado State Treasurer Dave Young announced the successful $400 million sale of the Colorado 2021-22 Series B Education Tax Revenue Anticipation Notes (ETRANs) on behalf of 19 public school districts across Colorado. 

“The ETRANs program ensures that school districts throughout Colorado can meet their cash flow needs, protecting our hardworking teachers and incredible support staff,” said Colorado State Treasurer Dave Young, a former junior high math teacher. “Our ability to provide interest-free loans to Colorado school districts has been a critical tool in alleviating temporary cash flow deficits. This is especially true now, as we continue to experience an unprecedented economic crisis.” 

"Denver Public Schools is very grateful for the Colorado Department of the Treasury's leadership of the ETRANs program. Our school district is heavily funded by local property taxes which are typically collected in the second half of our school year. The ETRANs program provides DPS with reliable cash flow throughout the year which allows us to put our funds and focus where it is needed most: helping our students learn and grow."
Denver Public Schools Chief Financial Officer Chuck Carpenter

“We would not be able to do business at certain points in the year if we were not able to take advantage of this opportunity.  Most notably, in some years, like the past couple of years with COVID pandemic needs, ETRANS has been particularly critical. The significant needs around resources, coupled with the slow reimbursement processes attached to Federal and State funds designated for support during this unprecedented time, made ETRANS essential to our survival as a district. Without ETRANS, we would have not been able to make payroll, among many other obligations, at certain points while we waited for reimbursement.”
Wendy Rubin, Superintendent, Englewood Schools

“We are so grateful to the ETRAN’s program.  Without this support, Mapleton Public Schools would not be able to manage the cash-flow issues created by the complexities of the funding mechanisms. The tax collection timelines coupled with the gap between expenses and the reimbursement grant programs, create a potentially impossible hurdle for districts like Mapleton Public Schools.  This year, more than ever, these loans have been critical for Mapleton Public Schools to meet financial obligations.”
Charlotte Ciancio, Superintendent, Mapleton Public Schools

ETRANs are issued at the start and midway through each fiscal year, funding the State’s Interest Free Education Loan program. Because property taxes are not collected until the spring, it isn’t unusual for school districts to have cash flow shortages in the fall and winter.  The legislature designed ETRANs to be an interest-free loan to meet those school district operational needs.

The ETRANs 2021-22 Series B Notes are short-term notes, payable in June, at the end of the current fiscal year. This issuance received the rating of SP-1+ from Standard and Poor’s and MIG 1 from Moody’s Investors Service. Each rating was the highest possible within that class of issuance.

The following districts participated in the 2021-22 Series B Notes: 

Aspen School District RE-1
Boulder Valley
Cherry Creek (Arapahoe 5)
Douglas County RE-1
Eagle County RE-50
Elizabeth School District
Englewood (Arapahoe 1)
Estes Park (Larimer R-3)
Fort Lupton (Weld Re-8)
Johnstown-Milliken (Weld RE-5J)
Lake County (Leadville)
Littleton (Arapahoe 6)
Mapleton (Adams 1)
Platte Valley (Weld RE-7)
Poudre (Larimer R-1)
Summit County RE-1
Thompson (Larimer R2-J)
Windsor (Weld RE-4)