School District Credit Quality is Strong, Former Mayor Bloomberg is Overreaching
06/02/2022
Former mayor of New York City Michael Bloomberg’s analysis suffers from selection bias, and his conclusion that classrooms will be “half-empty” is an overreach.
We still have a “Positive” outlook on the school district sector. We continue to expect public finance, and school district rating upgrades will outpace downgrades in 2022.
The substantial amount of federal aid to public finance entities, including schools, will allow a softer landing during this and near-term budget planning. However, we are on the look-out to make sure that individual entities do not lose structural balance.