The Johnson County School District Trustees voted on Monday evening to establish a line of credit in the event of a shortage of cash in the coming months as schools continue to deal with the educational funding shortfall.
Business Manager Eileen Bentley explains why the line of credit may be necessary…
The cash flow problem is primarily the result of hundreds of thousands of dollars in Johnson County taxes being held in escrow as a result of a large number of tax appeals that have been filed by energy companies.
Nearly a quarter of a million dollars is unavailable to the county and subsequently the school district until the tax issue has been resolved, which could take several months.
