Standard & Poor’s said in a report Wednesday that California’s newest budget proposal would allow for more financial flexibility for schools.

“Standard & Poor’s further believe that the governor’s proposed changes to the education funding formula, if adopted, will strengthen school district credit on average,” the report said.  “In a state funding environment characterized by fewer constraints on spending, pressure to restore programs, and continued uncertainty with respect to state funding, financial management could become an increasingly important factor in determining credit quality.”

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