Pacific Grove Unified School District

The Pacific Grove USD Business Services Division is responsible for financial services and the day-to-day operations for budget, accounting, payroll, retirement reporting, , and other business-related services

 

 

Business Office FAQ's:

Q: What is a Basic Aid or Community Funded School District?

A: A basic aid school district is one that primarily relies on local property tax revenue to fund its operations, rather than state funding. PGUSD receives a fixed amount of funding per student based on local tax collections in liue of the states Local Controll Funding FOrmula (per pupil allocation). This model can provide more stability and predictability in budgeting for schools, as it ties funding directly to local property values.

Q: Why does PGUSD use a Tax Revenue Anticipation Note (TRAN)?

A: Basic aid school districts often use a Tax Revenue Anticipation Note (TRAN) for several reasons:

• Cash Flow Management: TRANs help address short-term cash flow issues by providing immediate funding until tax revenues are collected, ensuring that the district can meet its operational expenses, such as payroll and vendor payments.
• Timing of Tax Revenues: School districts often experience a lag between when taxes are assessed and when they are collected. TRANs bridge this gap, allowing the district to maintain financial stability during periods when tax revenue is not yet available.
• Flexibility: TRANs can be structured to fit the specific cash flow needs of the district, providing flexibility in repayment schedules based on anticipated tax revenue.