DALLAS - Rising costs and legislative cuts to funding may also result in higher debt ratios for Texas schools, adding strain to underlying ratings, according to a special report from Standard & Poor’s.

“Several districts have opted to issue debt for equipment purchases and maintenance projects that had traditionally been funded with ongoing revenues as a means to free up their operating budgets,” according to the report issued Thursday. “In addition, school districts have also cut costs and, in some instances, have deferred major capital needs for the past two to three fiscal years.”

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