Clayton County board approves last-minute tax anticipation note after brief debate; one abstention

The Clayton County Board of Education voted Nov. 3 to approve the issuance of a tax anticipation note (TAN) and to adopt the accompanying resolution after the item was added to the business agenda at the start of the meeting.

Board members added the TAN item by majority vote and then considered a motion "to approve the superintendent's recommendation to approve the issuance of the tax anticipation note as proposed and adopt the resolution," according to the meeting record. Finance staff told the board the vote was time-sensitive because the next scheduled board meeting was Nov. 17 and the district needed to arrange funding before the end of the following week to meet cash-flow requirements.

During discussion, one board member questioned why the matter was added so quickly; a finance official said the request was routed to the board the prior evening and that legal and procedural steps described by counsel were followed. Another board member raised budgetary concerns, noting the district’s large operating budget and declining reserve levels, and said the TAN would add approximately $40,000,000 to the district’s debt obligations. That member said, “We run a $1,200,000,000 budget…At one point, we were at 3.5 months of reserves. We're now down to 2…This TAN will add another $40,000,000. So for that reason, I am abstaining,” and confirmed their abstention on the record.

The chair recorded a mix of votes that resulted in approval of the TAN resolution. Board members asked that the finance department post the adopted resolution after the meeting for public access.

The TAN vote followed unanimous approval of a consent agenda earlier in the meeting and came after the board returned from executive session. The district’s finance office said it would provide the resolution text and post it to make the details available to the public.