Analysts gave alarms months ago about Hillsborough school finances

Analysts gave alarms months ago about Hillsborough school finances

The three most recent reports are linked below, along with key passages. The district and School Board hope to have a recovery plan in hand that they can approve on Thursday. State Commissioner of Education Richard Corcoran has given Hillsborough the May 12 deadline, warning that if there is no resolution by then, the district might be placed in a financial receivership. That means the state would order a forensic audit and appoint a financial advisory board to oversee spending. Fitch: a ‘structural budget imbalance’

All three reports acknowledge the challenges posed by COVID-19. But they also express uncertainty about the district’s ability to lower its spending long-term. The writers noted that, for the first time, the district took out a short-term bridge loan of $75 million this past year to ensure it could make payroll as it waited for property tax payments from the state. Ratings have been lowered for “certificates of participation,” instruments that serve collectively as a giant mortgage on the district’s newer schools.

That bridge loan was repaid. But the action troubled the analysts anyway, and Standard & Poor’s considered it “a negative credit factor.” In addition to the threat of a financial takeover by the state, Hillsborough could find itself at a disadvantage when it needs to borrow money. Already, the three firms — Moody’s, Fitch and Standard & Poor’s — have lowered ratings on the district’s outstanding debt. That means the bonds investors buy as a way of lending the district money are no longer as attractive, which raises borrowing costs.

Without policy action, “Fitch expects the natural pace of spending to exceed revenues,” which will prolong the crisis and lead to more downgrades. Standard and Poor’s: a history of overspending While $400 million in federal COVID-19 relief aid could solve an immediate problem, “these moneys are non-recurring and Fitch does not believe they should be relied upon to eradicate existing structural budget gaps.”

The removal of the negative rating watch “is dependent on the presentation of a board-approved financial plan for at least the current and following fiscal year that outlines expenditure saving measures as well as potential recurring new revenue sources that, in aggregate, Fitch considers credible to ensure maintenance of at least a 3 percent general fund balance,” meaning the reserve. “The negative rating watch reflects Fitch’s concern with the progress of the formulation of a financial recovery plan to correct the current and future years’ structural budget imbalance,” the authors wrote on April 29.

The News Highlights

  • Analysts gave alarms months ago about Hillsborough school finances
  • Check the latest News news updates and information about business, finance and more.
Disclaimer: If you need to edit or update this news from compsmag then kindly contact us Learn more

For Latest News Follow us on Google News


Latest Headlines
  • Show all
  • Trending News
  • Popular By week
Odonate Therapeutics announces financial results for the three months ended March 31, 2021

Odonate Therapeutics announces financial results for the three months ended March 31, 2021

(in thousands, except par value and share amounts) Condensed Balance Sheets  Odonate Therapeutics, Inc. is a pharmaceutical company formerly focused on ...
How V2 Cloud helps distributed workforces

How V2 Cloud helps distributed workforces

For instance, enterprise house owners wish to determine an economical manner of enabling their workers to make money working from home with out compromising ...
Co-diagnosis reports financial results for the first quarter of 2021

Co-diagnosis reports financial results for the first quarter of 2021

Second-Quarter 2021 Outlook:Co-Diagnostics is offering the following guidance for its second quarter of 2021: Continued development of previously announced new ...
The Wizards and Capitals will be able to accommodate more fans at home games in the near future

The Wizards and Capitals will be able to accommodate more fans at home games in the near future

That will be up from the 10 percent limit they have been operating with since April 21. That was just a start after 13 months of no fans being allowed at ...
Mental Health Awareness Month for Students

Mental Health Awareness Month for Students

Dr. Nauman says if you’re worried about your student’s mental health, Rochester Public Schools has a “Mental Health Screener” on its website, and other ...
Allentown School Plans To Distribute Sturdy laptop cases to Protect their Laptops

Allentown School Plans To Distribute Sturdy laptop cases to Protect their Laptops

The next step is to keep those laptops from breaking. When ASD students return to school in the fall they will be issued special cases to keep their laptops ...
Digital health tools are not effective as stand-alone solutions, says the expert

Digital health tools are not effective as stand-alone solutions, says the expert

“While digitalisation can streamline operations and optimise resources, they remain as enablers; they wouldn’t work as efficiently – or as effectively – if ...
Mike Novogratz has more than $ 5 billion in cryptography?

Mike Novogratz has more than $ 5 billion in cryptography?

Source cointelegraph.com “The last five months have kind of rocked our worlds in terms of what percentage of our net worth is in crypto,” said the Galaxy ...
Allstar raises $3.85 million to enable gamers to share tasty game highlights

Allstar raises $3.85 million to enable gamers to share tasty game highlights

The New York-based company’s mission is to democratize the creation of game content, so that anyone can be a YouTube star. The platform helps casual gamers ...
WPD Pharmaceuticals provides update on audited financial statements

WPD Pharmaceuticals provides update on audited financial statements

‘Mariusz Olejniczak’ On Behalf of the Board Mariusz OlejniczakCEO, WPD Pharmaceuticals WPD has entered into license agreements with Wake Forest University ...
Show next
Compsmag - Latest News from tech, business and health
Logo