Jeff Hirsch got ahold of them and they admitted that the, still rosy rating, is predicated upon the strength of the community: “The Aa3 issuer rating,” Moody’s says, “reflects the district’s strong economy….”. If this was Harvey’s school district it would be a very different rating. Indeed, I wouldn't be surprised if their district wasn'…
Jeff Hirsch got ahold of them and they admitted that the, still rosy rating, is predicated upon the strength of the community: “The Aa3 issuer rating,” Moody’s says, “reflects the district’s strong economy….”. If this was Harvey’s school district it would be a very different rating. Indeed, I wouldn't be surprised if their district wasn't in better, stand-alone, financial shape. Implicit in Moody's evaluation is that the people of Evanston will step in and absorb the $328M, and counting, shortfall. Despite what Moody's listed, the debt balance should formally be, $99M in prior debt + $40M in lease certificates. Add to that the $188M in deferred maintenance (every CFO I’ve spoken with would definitively consider this a very expensive and ill-advised form of debt; it’s an explicit obligation) and D65 is in a $328M hole that’s growing rapidly. The most recent slides from D65 CFO project these shortfalls to start accelerating in upcoming years with expected shortfalls of $19M, $24M and $29M for FY’26-28 and this is BEFORE counting the Capital Expenses and added Debt service of the proposed Foster School. In an environment of proposed school closures, teacher layoffs, and serious financial distress, D65 is in no position to be thinking about a new school. Then again, it’s decisions like this that got them into this financial mess in the first place.
Jeff Hirsch got ahold of them and they admitted that the, still rosy rating, is predicated upon the strength of the community: “The Aa3 issuer rating,” Moody’s says, “reflects the district’s strong economy….”. If this was Harvey’s school district it would be a very different rating. Indeed, I wouldn't be surprised if their district wasn't in better, stand-alone, financial shape. Implicit in Moody's evaluation is that the people of Evanston will step in and absorb the $328M, and counting, shortfall. Despite what Moody's listed, the debt balance should formally be, $99M in prior debt + $40M in lease certificates. Add to that the $188M in deferred maintenance (every CFO I’ve spoken with would definitively consider this a very expensive and ill-advised form of debt; it’s an explicit obligation) and D65 is in a $328M hole that’s growing rapidly. The most recent slides from D65 CFO project these shortfalls to start accelerating in upcoming years with expected shortfalls of $19M, $24M and $29M for FY’26-28 and this is BEFORE counting the Capital Expenses and added Debt service of the proposed Foster School. In an environment of proposed school closures, teacher layoffs, and serious financial distress, D65 is in no position to be thinking about a new school. Then again, it’s decisions like this that got them into this financial mess in the first place.