Key Takeaways
- S&P Global Ratings has revised its 2021 sector views for the U.S. state, local government (including school district), and charter school sectors to stable from negative given our view of stronger economic growth for 2021 and beyond.
- Federal funds through the American Rescue Plan (ARP) provide significant financial support to these sectors and other provisions of ARP will accelerate recovery from the pandemic and the recession.
- Material cuts, deferrals, or delays in funding to schools and local governments is unlikely given stronger-than-budgeted state revenue performance coupled with federal stimulus funding.