OKLAHOMA CITY (AP) — One of the nation's top credit rating agencies is noting Oklahoma's declining funding to public schools as further negative pressure on the state's financial outlook.
Moody's Investors Service reported Friday that Oklahoma's continuing revenue problems are noteworthy because local school districts rely heavily on state funding and are limited by property tax limits.
Moody's gives credit ratings to 10 Oklahoma school districts, all of which are operating at the property tax cap and have implemented contingency plans for the current fiscal year. The company's report says those reserve draws and other one-time measures "diminish options for fiscal 2017 without reducing credit quality."
The Oklahoma Legislature is facing a $1.3 billion hole in the fiscal year 2017 budget, which is nearly 20 percent less than last year's spending.