FCPS Interim Chief Financial Officer Kyna Koch made it plain in a planning meeting Monday night. When it comes to taking out a loan, the board's hand is being forced.
"We don't need to. We have to," she said. "We cannot make the second payroll in July without this money."
While Koch stressed that many variables remain and the dollar amounts may fluctuate in coming weeks, the estimated sum needed will be "up to $110 million." The loan, called a tax revenue anticipation note, is not as commonly used as previously indicated, she said. And it's unlikely to be a one-time occurrence as the district seeks to right its financial ship.
"It's just to shore up until we get guaranteed revenue, but I would have to say we will probably need the same practice next year," she warned. "I don't anticipate our contingency (fund) growing to the point that we could actually fund our way out this in the next year."
School districts are required by the state to keep their contingency funds at 2%. The plan is to provide the minimum amount to meet that threshold in the upcoming budget.
Koch said that tentative budget, which relies in part on selling off school properties to the tune of $3 million, will be built with a beginning balance of zero — a number she said is meant to be highly conservative to ensure the district isn't left counting on any funds that don't materialize.
The district has already announced layoffs and reductions in work hours to contend with a more dire revenue picture than previously thought.