Unlike prior years, the Michigan Finance Authority (“MFA”) will not offer a spring 2013 state aid note pool (i.e., the “bridge loan” program). However, school districts demonstrating an operating cash flow deficit between now and August 20, 2013, may still be eligible to issue state aid notes or tax anticipation notes through a bank. Similarly, public school academies may be eligible to issue state aid notes through a bank.
If your school district or academy needs to borrow funds for operating purposes in the near future, please contact your note counsel as soon as possible to begin the borrowing process. Schools that must borrow, but do not have “qualified status” with the Michigan Department of Treasury, should plan well ahead. The Treasury application procedure for “prior approval,” which must be satisfied if Treasury has denied a school qualified status, adds approximately six weeks to the borrowing process.