Community colleges with revenue-backed debt – US: 2019 outlook stable with steadying enrollment, higher state and local revenue

Source: Patrick McCabe, Susan I Fitzgerald, Kendra M. Smith, Moody’s, November 29, 2018
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Our stable outlook indicates our expectations for the credit conditions driving the community colleges with revenue-backed debt sector over the next 12-18 months. Total annual revenue will grow 1.5%-2.5%, with relatively steady enrollment allowing for continued modest net tuition revenue growth. State appropriations and local property tax revenue will also support gradual overall revenue growth. However, increasing pension and retiree healthcare liabilities and some voter resistance to debt issuance are a potential hindrance for some community colleges…..