The loan is called a tax revenue anticipation note, or TRAN. The district's interim chief financial officer, Kyna Koch, described the request at a recent press conference.
"These are short-term loans from a lending agency that school districts can use to address a cash flow problem created when expenditures must be incurred before the tax revenues are received," she explained. "This is a very common practice in Kentucky school districts due to the timing of when tax receipts begin coming in in the fall."
An agenda document obtained by WKYT also confirms what Koch had signaled regarding the school system's contingency fund, indicating it will likely fall below the required 2%.
"We are going to make the adjustments that are necessary," Koch had said regarding a potential gap in the contingency fund. "(Superintendent Demetrus) Liggins has referred to it as ripping off the band-aid and that's what we're doing."
The new details follow April revelations that a series of financial misstatements tracing back to 2008 had painted an inaccurate and much rosier picture of the district's overall finances.
As for a response regarding the loan, district spokesperson Miranda Scully told the Lexington Herald-Leader the board conducts its business "publicly through open meetings, not through social media or traditional media platforms."