Colorado State Treasurer Dave Young has announced the sale of $560 million in Education Tax Revenue Anticipation Notes (ETRANs) to provide interest-free loans to 21 school districts across Colorado. The program is designed to help these districts address cash flow shortages that arise before property tax revenues are received later in the year.
“Many school districts do not receive property tax revenue until later in the year,” said Colorado State Treasurer Dave Young. “This funding fills a temporary gap so classrooms can operate without disruption, enabling school districts to focus their budget on classroom needs.”
State law allows the Colorado Department of the Treasury to issue short-term debt through ETRANs, which are distributed twice each year. This approach provides operating funds for K-12 schools while they await local property tax collections.
James Eke, Debt Manager for the Colorado Department of the Treasury, explained: “ETRANs give school districts the flexibility they need for cash flow without pulling resources away from students. Issuing these notes at the state level allows us to deliver low-cost financing that saves schools money.”
By accessing funds through the state rather than borrowing individually, school districts benefit from lower costs and more resources directed toward classrooms.
“Denver Public Schools is very appreciative of Treasurer Dave Young and his team at the Colorado Department of the Treasury,” said Denver Public Schools Chief Financial Officer Chuck Carpenter. “Their leadership with the ETRANs program provides DPS with reliable cash flow throughout the year, allowing us to put our funds and focus where it is needed most: helping our students achieve their goals.”
The 21 school districts receiving support from this round of ETRANs include Aspen School District RE-1, Bennett 29J, Boulder Valley School District RE-2, Cherry Creek (Arapahoe 5), Denver School District 1, Douglas County RE-1, Eagle County RE-50, Elizabeth School District, Englewood (Arapahoe 1), Estes Park (Larimer R-3), Gilcrest (Weld 1), Johnstown-Milliken (Weld RE-5J), Lake County (Leadville), Littleton (Arapahoe 6), Moffat County RE-1, Poudre (Larimer R-1), Roaring Fork (Garfield), Summit County RE-1, Thompson (Larimer R2-J), Windsor (Weld RE-4), and Woodland Park RE-2.
The notes must be repaid within the same 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 highest possible ratings from both agencies.
More information about ETRANs can be found on the Colorado Department of the Treasury website.
