Vermont Code § 16 V.S.A. § 566

Authority to borrow
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§ 566. Authority to borrow
Notwithstanding the provisions of subdivision 562(9) of this title, if a budget for the support of schools for the ensuing year has not been approved
on or before June 30 of any year, the school board may borrow funds necessary to enable
it to operate the schools on a budget of up to 87 percent of the most recently approved
school budget. If the school board borrows money under this section, it shall determine
how all funds shall be expended.

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