School Closures May Help District’s Credit Rating
Is this a bright side? The Philadelphia school district’s decision to close down two dozen schools is being praised by bond analysts, Philly.com reports. That could make it easier for the cash-strapped district to borrow money going forward.
According to the report from Moody’s bond analysts: “Setting aside the effect of the closures on children and their education, the closures are positive from a credit perspective because they indicate that the district and the SRC are intent on reducing expenditures. … While the SRC voted to keep open four of the 27 schools originally slated for closure, the vote indicated the commission’s and management’s resolve to confront the district’s significant financial challenges – even if it meant taking unpopular measures. The SRC will vote on two additional closures later this year, and more school closures are likely in fiscal 2014 and beyond despite widespread public opposition.”
Of course, if you don’t have enough money, you can’t afford to keep schools open. Still, there’s something haunting about that phrase—”setting aside the effect of the closures on children and their education”—isn’t there?