School bonds

A flow of public dollars to private schools has raised credit concerns about public schools and spurred litigation in Southwest states.

The Local Government Commission approved issuance of notes that will be taken out gradually in the next few years.

School districts are facing many challenges, including less federal funding, increased competition, declining enrollment and inflating costs.

A 2024 Illinois law loosened school bond restrictions, allowing districts to authorize some debt without an election. That caused a backlash in one district.

New Jersey's Toms River school district was downgraded two notches by S&P after refusing to adopt a budget and discussing bankruptcy.

School districts across Missouri face uncertainty over certification of their bond measures in light of a statute requiring a precise public notice window.

A New Jersey school district will likely avoid filing for bankruptcy after the state passed a budget that raised property taxes. 

As it fights with the state over funding, the board of the Toms River Regional School District refused to raise taxes and threatened a bankruptcy filing.

The Alpine School District deal will finance school buildings in a part of the district that will be split off into a separate entity in July 2027.

Downtown College Prep, a charter school operator in San Jose, defaulted on $34 million of municipal bonds, citing the area's dwindling number of children.

The ratings agency said fund balances had declined as a percent of operating revenues and are expected to decline further.

K-12 public schools get a $55 per-student increase in the state basic allotment, while other funding is allocated to specific purposes.

Civic Builders, a 23-year-old nonprofit charter school developer and financer, borrowed though the public municipal bond market for the first time.

May 6 brought disappointing results for two Midwest states with school bond referendums on ballots, as voters mostly rejected the issuances.

The DASNY program allows the schools to "align their borrowing costs with the aid that they receive from the state," said CEO Robert J. Rodriguez. 

The law Indiana Gov. Mike Braun signed earlier this month will make it harder for local governments and school districts to issue bonds.

Bills have been introduced to eliminate the May election option for local bond and tax propositions, forcing them onto the November general election ballot.

The commission also approved converting a GO bond sale from competitive to negotiated.

The Ohio House's proposed cap on school districts' carryover balances at 30% of their annual operating costs has drawn praise and criticism.

The Osceola School District sales tax revenue bonds got strong ratings despite the county's economy facing headwinds from a weakening tourism sector.