Key Takeaways
- Between June 2024 and June 2025, S&P Global Ratings’ negative rating and outlook revisions for U.S. K-12 public school districts rose markedly, with the number of negative outlooks rising 40% during this period.
- As states face more fiscal pressure from expenditure increases outpacing revenue growth, K-12 districts that rely on state funding will be in an increasingly precarious position.
- If weaker economic conditions materialize as forecast by S&P Global Ratings economists, districts that rely on ongoing voter support for operating levies–or those seeking additional funding–might find it more difficult to garner support.
- Given the availability of federal stimulus money in the past five years that helped bolster operations, districts that are already struggling to make ends meet will likely find conditions more difficult.
11-Sep-2025 | 14:29 EDT