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Can the cross fiscal year TRAN also provide for cash flow needs for the 2011-2012 fiscal year?

April 26, 2017Cash flow cross Needs tran

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Can the cross fiscal year TRAN also provide for cash flow needs for the 2011-2012 fiscal year?

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No. Per state law, only revenues from the fiscal year in which a TRAN is issued can be pledged for its repayment. Since, 2011-2012 revenues cannot be pledged towards the repayment of a cross fiscal year TRAN issued in the 2010-2011 fiscal year, only the deferred 2010-2011 state apportionment payments will secure this cross fiscal year TRAN. After the 2010-2011 deferred apportionment payments are received, these funds must be set aside to repay the cross-fiscal year TRAN.