MSSC MAEP ruling credit negative for school districts

Credit rating agency gives schools negative report

“The decision (that full funding is not mandated) is credit negative for Mississippi school districts because it makes the recovery of past MAEP funding shortfalls highly doubtful and increases the likelihood of continued legislative underfunding of the state aid formula,” said Moody’s Investor Services. Moody’s analyzes the finances of governmental entities to determine the rates they pay on long-term debt.

By the same token, the report said, “Removing the risk of either a one-time payout or increased annual appropriations is credit positive for the state.”

Daily Journal
10/27/17