States will cut K-12 education funding, pushing budget pain to school districts with varying ability to cope

Source: Moody’s, June 23, 2020
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Many states suffering revenue declines because of the coronavirus outbreak will cut K-12 funding, leaving school districts having to raise revenue, reduce expenses or draw down reserves. Raising revenue or reducing expenses generally lowers credit risk the most, while spending reserves, particularly large single-year drawdowns, tends to carry the greatest risk. ​