Borrowing Options in a Time of Crisis
By Anne E. Noble
Managing Director
Stifel Public Finance
What’s the difference between a side effect and an aftereffect? Side effects are the short-term undesirable effects related to something like a medication or procedure. Aftereffects, on the other hand, remain well into the future after a course of treatment has been completed. Side effects are temporary. Aftereffects are a permanent change of affairs. It’s like the difference between acute and chronic pain. ESSER I, ESSER II and CARES were remedies designed to address some of COVID-19’s acute pain, but the aftereffects of COVID-19 may very well develop into chronic pain for certain school districts and their finances.
While the future financial paths for school districts in Illinois are always uncertain, many administrators are beginning to consider contingency plans to replace revenues when the COVID relief funds are exhausted. There are various potential sources of funds that might be available to your district if assistance is needed related to a cash flow challenge in one or more of your district’s funds during future school years.