Fiscal 2013 state funding trigger cuts would amplify existing fiscal challenges and could result in a heightened level of downgrades over the next one to two years as districts adjust to potentially lower baseline funding levels, according to a new Fitch Ratings report.

Fitch believes that downgrades related to trigger cuts would not be immediate and wide-spread for a number of reasons, including recognition that districts' mitigating actions will vary and will take time to formulate and enact.

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