This program is designed for districts which experience temporary cash flow deficits due to delayed and uneven distributions of state aid payments or local property tax collections. It provides a cost efficient alternative which has proven to be superior to the traditional forms of cash flow borrowing and allows school districts to issue promissory notes to the program’s participating banks in an amount equal to their maximum projected deficit, plus one month’s operating expenditures. Notes are issued with a fixed rate of interest and date of maturity.

A major benefit of this program is that districts enjoy a fixed rate of return on their investment at a rate higher than the interest paid on their promissory note. Districts also have the flexibility to draw and repay funds as often as necessary to meet cash flow needs.

To begin application for the Cash Flow Management Program, complete the Cash Flow Management Questionnaire and the Cash Flow Data Sheet. Print, complete, and submit each document to MSBA for consideration.

If you are interested in the Cash Flow service, you will need to submit these documents.