Kansas School Ruling Noted By Credit Rater
Associated Press - March 15, 2014 4:13 pm
A Kansas school district the state's new education commissioner left earlier this month is facing questions over the timing of revelations that an administrator was suspected of misusing district funds.
A leading credit rating firm says a recent Kansas Supreme Court ruling on school funding was a “negative” event that puts even more pressure on the state’s ability to pay its debts.
Moody’s Investor Service, one of the leading credit rating firms in the country, raised the concerns in its weekly public finance outlook issued late Thursday. Analysts noted that complying with the court’s order to increase funding for two special funds aimed at equalizing spending in poor districts constituted a “credit negative” for Kansas.
Legislators haven’t decided how they will respond to the ruling or where the funding would come from, though there are several options, ranging from using existing state revenues or trimming other areas of government spending.