From the Superintendent's Desk
Moody’s Investors Service Upgrades Kyrene’s Bond Rating
The nation, state and valley are facing some difficult economic times. When thinking about how all this impacts school districts, it is important to keep in mind that we depend upon an equalized per pupil funding formula in Arizona which means that every school district receives the same dollar amount per student. Now while that might seem clear, the formula is not as simple as it sounds because different categories of students are funded by what are called “weights” that have been established by the legislature. In addition, some of the funding we receive is specifically earmarked for certain programs (i.e. full day kindergarten, early literacy etc.) School finance in Arizona is extremely complex and very few people understand how it works. Many individuals and professional organizations believe that major reforms (including additional funds) are needed. When the economy is suffering and funding for public education is threatened, it is understandable that school districts become quite nervous and concerned.
With that being said, the Kyrene Elementary School District is one of the best managed systems in the state of Arizona. Even before Governor Napolitano’s initiative to spend an additional nickel of every dollar in the classroom, the values of the Governing Board, school district and community already had Kyrene allocating more of these scarce dollars in the classroom than other districts. Currently, Kyrene is spending 9.7% more than the state average in the classroom and 22% less than the state average on administration.
We recently learned that Moody’s Investors Service upgraded Kyrene’s bond rating from Aa3 to Aa2 which is noteworthy because few districts in the state have earned this highly favorable rating. Moody’s attributes this to strong management, sound fiscal operations and enrollment decline that has been mitigated by open enrollment for students who reside outside the district. It is also due to the strong leadership and stewardship demonstrated by the Kyrene Governing Board and financial team. Gratefully, because of strong community support for the school district, Kyrene also has additional funding from three voter approved overrides that run for seven years. These overrides are for maintenance and operations (M&O), grades K-3 and capital purposes. So, while we see the impact of a floundering economy negatively impacting school districts all around, Kyrene remains stable and sound. That being said, there is very little discretionary money available for any number of things we might desire to do, but we are not forced to make the tough decisions that many school districts are faced with.
As we continue to develop and change as a school district, we are committed to remaining one of the very best places to educate children in the state of Arizona!
David Schauer, Ed.D.
Superintendent
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