Standard & Poor’s lowered its rating to BBB-plus from A-minus on the outstanding general obligation refunding bonds issued by Bullock Creek School District, located in Midland County. The downgrade reflects a structural budget imbalance and four consecutive years of fiscal decline with a fifth expected next year. For four years Bullock Creek has drawn on its unreserved general fund to meet growing expenditures, said analyst Jane Hudson Ridley. “A failure to return to structural balance in the near future could place additional pressure on the rating,” she wrote in a report accompanying the downgrade. The school system plans to address the structural imbalance but has not yet drafted a balanced budget. The 80-square-mile district enjoys a steady tax base growth, above-average income levels, and moderate debt levels.

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