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The California School Cash Reserve Program helps guard against temporary cash flow shortages in a safe, cost-effective way by creating an additional cash reserve to the general fund. Participants issue Tax and Revenue Anticipation Notes (TRANs) through a streamlined, pooled process. Learn more about our low borrowing costs, flexible use and repayment process, and easy, efficient administration today.

The program

CSBA works with Dale Scott & Company; Piper Sandler; and Orrick Herrington & Sutcliffe to provide the Cash Reserve Program for school districts, community colleges, and county offices of education.

School districts, community college districts, and county offices of education are often faced with the difficult situation of having to fund regular monthly expenditures with irregular receipt of state aid and property tax revenues. These imbalances are typically caused by the uneven or “lump sum” receipt of revenues (e.g., twice a year property tax receipts as compared to regular monthly expenditures) and the deferral of state apportionment payments.

With more than 5,900 TRANs issued, the Cash Reserve Program is a leading cash management tool designed to supplement issuers’ general fund cash reserves and to act as a buffer for temporary cash flow needs. To create this reserve, a TRAN is issued.

 

Key dates for upcoming TRAN issuances

February 2021 (Cross-Fiscal Year TRAN to Cover Apportionment Deferrals)

  • September 2020 – December 2020: Board-ready resolution to participate available
  • November 20, 2020 – Deadline to apply for California School Cash Reserve program
  • December 20, 2020 – Deadline to adopt program resolution*
  • January 2021 – Complete cash flow projection and TRAN amount
  • February 2021 – TRAN issued and funds available for use

July 2021 (Traditional Fiscal Year TRAN for 2021-22)

  • February 2021 – May 2021: Board-ready resolution to participate available
  • May 14, 2021 – Deadline to adopt program resolution*
  • May/June 2021 – Complete cash flow projection and TRAN amount
  • July/August 2021 – TRAN issued and funds available for use

* If you are unable to meet resolution adoption deadline, please contact Dale Scott & Co. as soon as possible to see if a later adoption date can be accommodated.

There is no cost to apply for a TRAN or obtain a resolution, and no obligation to issue a TRAN if the program resolution is adopted by your Board.  Contact us now to preserve the option to issue a TRAN, if needed.

 

Resources

Steps to Issue TRAN

Contact

Mark Farrell
Dale Scott & Company
415.956.1030

Nicole Delos Reyes
California School Boards Association
3251 Beacon Blvd. West Sacramento, CA 95691
916.669.3275

Mark Adler
Piper Sandler
2321 Rosecrans Ave., Suite 3200 El Segundo, CA 90245
800.876.1854 | 310.297.6000 | Fax: 310.297.6001