001Under section 159-973, we are requesting an advance of state aid in the amount of $4 million. >> What happened? in order to alleviate projected cash deficits toward the beginning of this year fiscal year. As you know, state aid payments and tax revenues do not come into the district until around October. And obviously, we have operating expenses that are going on every day as we pay bills in the district. And so using a state formula that's been set up, >> Keith Kenny and I have gone through the numbers, done our projections as far as expenses and revenues, >> and we have prepared a schedule that's required by the state that should be uh before you as well. And based on that schedule and the timing of our uh expected dispersements cash, we have arrived at that
002number of 4,000 $4 million. And the state would advance that money to us. It probably we wouldn't get the money until October or um November. In all likelihood, this has to go through a lot of approval processes along the way. Um but that money then would give us sufficient cash funds to um continue on um through the rest of the fiscal year. Is there any questions? >> Mr. Gwell, can you speak a little closer? We're having some issues hearing you. Let's give it a try. >> Let me tell them. >> Yes, >> that is much better. Thank you. Anyway, we're going to have $8 million defic. No, what happens is is that the the calculations that we put together for revenues and expenses shows that we will we would enter we would enter into a
003negative cash situation. So the the advancement of four $4 million in state aid at that point in time will give us sufficient cash to keep operating. the once you take an advanced estate aid, you begin paying it back. They begin withholding from you the following month. So essentially, we are just shifting in time the uh to make sure we have adequate cash to continue meeting the bills during that that difficult period in time at the very beginning of October during October and November. Yeah. >> And my knowledge there is no interest rate. We merely this is not borrowing money. It's our money. It's just it's not timed by the state. Uh so we are just asking for an advance of what's already our money. If we did nothing, we would continue to get that money
004on a scheduled basis from the state. We're just asking for it to be accelerated. basically you know payments are calcul. So we get a percent each month of that going forward revenues uh for for a for the rest of the the funds that are allocated for the school's operations come in the majority comes in twice a year. So the beginning of the year, of course, the district has a lot of expenses that goes out goes out go out the door, but we don't really start receiving most of our uh state aid until like November, December. >> So this the the asking for the advance, it's really an advance. In other words, if we get an advance in October, they're going to they're not going to pay us in November, December against that money is the
005advance against the uh uh money that we that we if we were if they were to allocate equally this coming in, we wouldn't need this, right? So, we have because we have higher expenses going out at the end of the year and we don't receive our big chunk of our revenue until later in the year. We're asking for that event so that we don't run cash short in our um budgeted funds. We won't be over budget and we won't be getting any more money for the year that we would. All we're doing is asking them to advance us for a million dollars so that we can meet um some of these big pay these bigger months expenses until the tax revenues come in to subsidize um over the time stuff there. So that's all we're
006asking for. We're asking for an advance uh of that those funds. Unfortunately, they automatically take that back the next month. They start taking it back. You know, it's I'd prefer if they took it back over the next remaining months, just reduced it by each thing, but they took it all back stuff there each month be better off. other things like that. We ask for you know um but but you know you know so so we're we're we're just wanting to we're just trying to assure ourselves that we don't run out of funds know even though we may go run negative in these funds here. We may not run out of cash like in October we're supposed to run out of cash but we won't run out of total cash but we'll run out of cash
007in our um budgeted funds. We still have the budget capacity. We just won't have the cash to cover those. And we're trying to make sure that we we stay positive in our cash. >> Not alone. Okay. >> All those in favor say I. All those opposed say nay. Thank you. And Miss Gusman, motion carries. >> Thank you. Next item is approval of the re resolution of reconfiguration of Morris Kud. What is capability? Please approve uh the configuration today. The resolution Thank you.