Map of Berks County, Pennsylvania, United States Public School Districts (Photo credit: Wikipedia)
The Reading School District has faced some major financial challenges lately, and it’s not going unnoticed.
Citing budget struggles and a $15 million accounting mistake discovered last year, Moody’s Investors Service, a major credit-rating firm, has lowered two district bond ratings by two levels.
Moody’s announced last week the district’s underlying general obligation rating was lowered to Baa2 from A3, and its enhanced rating was lowered to A3 from A1.
The outlook for both ratings, a release from Moody’s says, is negative.
Read more: http://readingeagle.com/article.aspx?id=502171
Governor says schools must spend such money rather than rely on state
When budgets are tight, school districts sometimes have to dip into reserve funds to make ends meet.
It’s not something they like to do, but these are desperate times.
“We can’t count on doing this every year,” said Dr. Paul B. Eaken, Fleetwood superintendent.
This is the second year in a row that Fleetwood has relied on its reserves; the district spent $1.4 million to balance the 2011-12 budget.
Read more: http://readingeagle.com/article.aspx?id=389527