Standard and Poor’s has lowered the Ann Arbor Public Schools credit rating from AA-Plus to A-Plus. The downgrade came after the district used more reserves than originally anticipated this fiscal year.
Communications Director Liz Margolis says it’s the second downgrade in the last couple of years, but they shouldn’t continue.
In a statement Superintendent Jeanice Swift says they have in place a solid financial plan to improve fiscal stability. Swift highlights efforts to increase revenue through attracting more students while also taking steps to decrease expenditures without reducing services for students. She believes these moves will help the district begin to rebuild fund balance within a reasonable time.
According to Margolis efforts to increase enrollment appear to be working and the district should be able to increase fund equity next year. She believes this combined with contract concessions the district is working on should lead to higher credit ratings. Margolis adds since the district has no plans to sell bonds now she doesn't anticipate an immediate financial impact from the credit downgrade.
— Andrew Cluley is the Ann Arbor beat reporter, and anchor for 89.1 WEMU News. Contact him at 734.487.3363 or email him email@example.com.