noon, May 28
La Mesa-Spring Valley School District Receives Negative Bond Rating From Moody's
As if there isn't enough bad news for school districts across San Diego County. Yesterday, Moody's Ratings Agency downgraded general bond obligations for the La Mesa-Spring Valley School District.
According to Moody's the outlook on the rating is now negative.
"The downgrade is based primarily on the district's deteriorating cash deficit and ongoing operating imbalance. The district's cash deficit is substantial, entails multiple external borrowings within the fiscal year to fund operations and has progressively worsened," reads an article from the public finance publication, The Bond Buyer.
As seen in school districts across the state, lack of funding and late payments from state coffers are forcing school districts, La Mesa-Spring Valley School District being one of them, to deplete their reserves as a way to balance their budget.
"The negative outlook reflects the uncertain ability and willingness of the district to enact solutions sufficient to achieve fiscal balance -- on both a cash and GAAP basis -- in order to reduce reliance on external sources for liquidity and avoid further operating draws on reserves."
More like this:
- Debt-laden Jefferson law school gets "junk" bond rating — Dec. 7, 2013
- San Ysidro School District bonds downgraded — Nov. 19, 2013
- Sweetwater's gathering storm — Jan. 30, 2013
- U.S. Loses AAA Rating from S&P — Aug. 5, 2011
- Fitch Warns of Tax Increases — June 8, 2010