The Dallas Independent School District continues to impress the nation’s top bond rating agencies.
Fitch Ratings recently upgraded the district’s underlying bond rating to AA+, while upgrading the district’s overall rating outlook from positive to stable. According to Fitch, the ratings reflect the district’s commitment to effective fiscal management.
“This steady improvement in the district’s financial performance (which was notably achieved in the face of state funding cuts) was largely attributable to staffing-related expenditure reductions and conservative budgeting practices,” according to a press release from Fitch on businessnewswire.com. “Maintenance of vacant positions and tighter departmental spending controls allowed operations to outperform the balanced budgets.”
Meanwhile, Moody’s Investors Service has assigned Dallas ISD a bond rating of Aa1 for the second year in a row. Since 2012, Dallas ISD has not received a rating lower than an Aa2.
The Aa1 rating, according to Moody’s, “reflects the district’s sound financial operations and healthy reserve levels stemming from conservative budgeting and tightened expenditure controls.” A positive bond rating enables Dallas ISD to receive financing at reduced interest rates, saving the district valuable resources.
Overall, Dallas ISD’s fiscal strength continues to improve. In November, Dallas ISD recorded its eighth consecutive unqualified opinion from external auditors. The district also closed the 2013-14 school year with a record amount in its fund balance: $342 million, up from $37 million four years ago.