As school districts across the state look to bridge budgeting gaps and cash flow challenges, many are turning to Tax Anticipation Notes (TANs) to cover operational needs ahead of the new budget year. These short-term financing tools can be an effective solution to bridge the gap between now and the arrival of tax revenues in November (Florida) and state aid funds in Texas. But what happens after you issue a TAN — and how you manage those proceeds — matters just as much as the decision to issue one.

At Deep Blue Investment Advisors, we work closely with public entities every day, helping them navigate the realities of lean budget cycles while making the most of every dollar. We understand that cash flow mismatches are often unavoidable — but missed opportunities to earn on idle funds don’t have to be[.

That’s why we recommend considering the Florida Fixed Income Trust (“FL-FIT”) or Texas Fixed Income Trust (“TX-FIT”)—fixed income investment pools designed for public entities—as effective tools for maximizing interest earnings on TAN proceeds and other short-term funds.

What Is a FIT Pool?

The FL-FIT and TX-FIT pools are local government investment pools that provide public entities with a secure and liquid place to invest idle cash. These pools are:

  • Professionally managed
  • Fully compliant with state statutes and investment guidelines
  • Designed to offer competitive yields with daily liquidity and safety of principal

By placing TAN proceeds in a FIT Pool, your district can:

  • Earn interest while awaiting disbursement or use
  • Maintain full access to funds as needs arise
  • Align short-term investments with your long-term fiscal responsibility

Smart TAN Proceeds Start Here

We understand that managing school district cash flow — especially during tax anticipation note (TAN) cycles — is no small task. Between legislative timelines, rising costs, and enrollment shifts, every funding decision matters. That’s where FIT comes in.

With the Florida FIT program, school districts gain access to professionally managed investment pools designed to support short-term cash flow needs, including TAN proceeds. Our pools prioritize safety, liquidity, and competitive yield — so your funds are working for you while staying aligned with your policy and timeline.

Your Needs, Our Focus

Whether you’ve already issued TANs or are planning ahead, FIT offers flexible investment solutions backed by a team that understands the nuances of public sector finance. Let’s talk about how FIT can help you navigate the school year with confidence.

Connect With Deep Blue

Let’s start a conversation about how you can get more out of your short-term funds, with solutions tailored to the needs of your district. Connect with one of our advisors today to get started.


 
*This article is for informational and educational purposes only and does not constitute investment advice, an offer, or a solicitation to buy or sell any securities or to adopt any investment strategy. The views expressed are those of the author as of the date of publication and are subject to change without notice. While information contained herein is believed to be reliable, Deep Blue Investment Advisors makes no representations or warranties as to the accuracy, completeness, or timeliness of such information. Past performance is not indicative of future results. Investment decisions should be made based on the entity’s investment policy, statutory requirements, risk parameters, and overall financial circumstances.