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Moody's lowers Sonoma Valley school district's bond credit ratings

The article from The Press Democrat discusses the Moody's Investors Service's decision to lower the credit ratings of the Sonoma Valley Unified School District due to its financial challenges. The district's ratings were downgraded from Baa1 to Baa3 for its general obligation unlimited tax bonds, and from Baa2 to Ba1 for its certificates of participation. This downgrade reflects concerns over the district's ongoing structural imbalance between revenues and expenditures, exacerbated by declining enrollment, increased costs, and the depletion of its reserves. Moody's highlighted that the district has been unable to balance its budget without using one-time funds, and despite efforts to reduce costs through staff layoffs and program cuts, the financial outlook remains negative. The district's financial strain is also attributed to the broader economic impacts of the region, including the aftermath of wildfires and economic recovery efforts.

Read the Full Santa Rosa Press Democrat Article at [ https://www.pressdemocrat.com/article/news/moodys-sonoma-valley-school-district-credit-ratings/ ]