Key Takeaways
- Texas public schools faced significantly increased credit pressure in 2024, with downgrades and outlook revisions to negative outpacing upgrades and positive outlooks.
- We took negative rating actions on Texas school districts experiencing weaker local taxing base growth, declining enrollment, or management’s difficulty in closing structural gaps due to constrained revenue or expenditure flexibility.
- State legislative negotiations continue on increases to per-pupil funding and the establishment of a statewide Educational Savings Account (ESA) program for private and alternative school options, which could affect long-term funding for public schools.
10 Feb, 2025