What is a Tax and Revenue Anticipation Note?
/Tax and revenue anticipation notes (“TRANs”) are short-term financings issued by California school and community college districts to manage cash flow deficits. TRANs are more commonly issued by community funded districts due to how districts receive revenues. Districts receive revenue as property taxes are collected, which typically are collected in large installments in December and April. However, Districts have constant monthly expenditures, such as employee salaries. As a result, cash flow deficits may occur in the months leading up to the receipt of revenues.