Interest Free Loan Program Helps Districts Meet Cash Flow Needs
Jan. 22, 2025 (DENVER) - Colorado State Treasurer Dave Young announced a $475 million sale to help 19 school districts meet cash flow needs through the end of the school year.
“As a former middle school teacher, I’ve seen firsthand how budget crunches can affect students and staff alike,” said Treasurer Young. “I am proud that our Department provides these crucial cash resources year after year so districts can keep the lights on and continue supporting their hardworking employees.”
As part of its statutory mission, the Colorado Department of the Treasury may take on short-term debt to finance interest-free loans for K-12 districts, known as Education Tax Revenue Anticipation Notes (ETRANs). The Department issues ETRANs twice every fiscal year—in July and January—to help school districts cover operational costs while they wait for local property tax funding.
“The Treasurer’s Office is a great partner to Denver Public Schools and school districts across the state with the Interest Free Loan Program,” said Chuck Carpenter, the Chief Financial Officer of Denver Public Schools. “Since most of our revenue is from property taxes paid in the spring, this program helps us keep money in the classroom supporting our students. We appreciate the Treasurer’s Office and the General Assembly’s continued leadership in supporting this program.”
“The state Interest Free Loan Program is essential to the operation of the Boulder Valley School District,” said Bill Sutter, Chief Financial Officer of Boulder Valley School District. “Without the program, BVSD would either be forced to issue costly short-term debt or hold a significant amount of cash reserves for cash flow purposes—both of which take resources out of the classroom. The efficiency with which the Colorado Department of the Treasury can operate for all eligible school districts is much greater than all the districts managing the borrowing for their individual needs.”
The following school districts will receive support from the Colorado Series 2024B ETRANS:
- Adams 14
- Aspen School District RE-1
- Bennett 29J
- Boulder Valley School District RE-2
- Cherry Creek (Arapahoe 5)
- Denver School District 1
- Eagle County RE-50
- Englewood (Arapahoe 1)
- Estes Park (Larimer R-3)
- Gilcrest (Weld 1)
- Johnstown-Milliken (Weld RE-5J)
- Lake County (Leadville)
- Littleton (Arapahoe 6)
- Mapleton (Adams 1)
- Poudre (Larimer R-1)
- Roaring Fork (Garfield)
- Summit County RE-1
- Thompson (Larimer R2-J)
- Windsor (Weld RE-4)
ETRANs must be paid back within the given fiscal year. The recent issuance received an SP-1+ rating from Standard and Poor’s and an MIG 1 rating from Moody’s Investors Service—the agencies’ highest possible ratings, respectively.
For more information on ETRANs, visit the Colorado Department of the Treasury website.
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About the Colorado Department of the Treasury
The Colorado Department of the Treasury is the constitutional guardian of the public’s funds. It is the Treasury’s duty to manage and account for the taxpayers’ dollars from the time they are received until the time they are disbursed. The Treasury’s staff is committed to safeguarding and managing the people’s monies with the same diligence and care as they do their own. For more information, visit colorado.gov/treasury.