California’s 2014 budget is a credit positive for the state’s school districts because it increases the amount of state aid to schools and reduces funding deferrals, Moody’s Investors Services said in a recent report.

In the first budget in five years that didn’t cut aid to schools or warn that funding might be cut during the year, school funding for fiscal 2014 was increased by $1.6 billion or 2.3% from the 2013 budget. This year’s budget, signed by Gov. Jerry Brown on June 27, also projects $20 billion of additional funding increases by 2017.

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