JONESBORO — The Clayton County Board of Education has approved the district’s use of a $30 million Tax Anticipation Note.
The TAN is a short-term loan the school district will use to cover monthly operating expenses through December. The loan must be paid back by Dec. 31.
Chief Financial Officer Emma Benton said the TAN is needed based on how revenue is collected. The majority of funds the district uses comes from property taxes, which are collected by the county and distributed between November and December annually.
The cost to borrow the money is expected to cost $225,000 in interest and $15,000 in legal expenses.
Chief Financial Officer Emma Benton explained the borrowed money will be placed in the bank, drawing interest until it is needed. She said interest earned could offset the $15,000 legal expense.
Clayton County schools has used a TAN since 2017 to cover expenses.