FISCAL YEAR ENDING JUNE 30, 2009

Designed to provide Ohio’s school districts with access to low cost, short-term funding as well as high yield and secure temporary investments for the management of their cash flow deficits.

INTRODUCTION

Many of Ohio’s public school districts find it necessary to borrow money each year to cover shortfalls in their general operating funds. To meet this need, the Ohio Revised Code (ORC) authorizes school districts to borrow money in anticipation of the collection of property taxes and certain other revenues.

The School District Cash Flow Deficit Financing Program (the “Program”) sponsored by the Treasurer of the State of Ohio (the “Treasurer”), the Ohio Department of Education (“ODE”) and the Ohio Association of School Business Officials (“OASBO”) offers an effective mechanism for the pooling of these cash flow borrowings and their related investment to capture the economies of scale associated with a larger borrowing and the reinvestment of the loan proceeds.