The following statement was published on the District web site:
The primary factor that accounts for this rating is a declining fund balance, which is primarily the result of the economic downturn over the past few years, rising mandated pension contributions and health care costs, negative adjustments in state aid, all coupled with the tax levy spending cap. This has required us turn to our fund balance, which we had built up in better economic times, to fully fund our annual spending plans and maintain our educational programs. Beginning with the current fiscal year, we have taken steps to reduce our reliance on the use of fund balance to balance our budget. We do not now, and never have, operated on deficit spending. The issue of declining fund balance flagged by the Comptroller's Report provides a cautionary note for future budget planning. As we are beginning to develop our budget for the upcoming school year, we will be paying particular attention to the extent to which we rely on fund balance.