Districts’ Borrowing May Face Hit From Continued Financial Crisis

Source: Michele McNeil, Education Week, Vol. 28, Issue 06, September 24, 2008

Even as federal officials and members of Congress struggled this week over a rescue plan for troubled portions of the nation’s financial sector, states and school districts braced for ripple effects that could further threaten their stressed budgets.

The situation could have its biggest long-term impact on districts’ capital projects, as the upheaval in the credit and stock markets threatens to drive up the cost of borrowing money.

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