Despite lean times, the Long Beach Unified School District’s credit rating remains high because of careful management.
Standard & Poor’s recently assigned a high AA-/Stable rating to the district. Such high ratings help to save taxpayers millions of dollars in bond interest. Local voters in 2008 approved $1.2 billion in bonds for school modernization and construction.
The high rating doesn’t eliminate LBUSD’s budget woes. The school district still must cut about $90 million more from its budget because of the state’s ongoing fiscal crisis. But S&P’s opinion shows that the school district continues to live within its increasingly limited means.
“The stable outlook reflects our expectation that the district will maintain good reserve levels despite expected revenue decreases resulting from reduced state revenue sources,” S&P stated.
Standard & Poor’s is known to investors as a leader in financial market information. S&P also maintains the S&P 500, one of the most widely followed indices of American stocks.