Madison School District Debt Ratings & Burden
Via my open records request:
Debt schedule
Standard & Poors Debt Rating September, 2024
“ai” summary:
Madison Metropolitan School District – S&P Rating Summary (September 2024) Current Ratings
- SP-1+ rating on $50M Tax Revenue Anticipation Notes (due Sept 2025)
- AA+ rating on existing General Obligation debt
- Outlook: Stable
Financial Strengths
- Stable operating performance with conservative budget management
- Strong cash flow coverage for TRANs (2.16x projected coverage)
- Improved cash position since 2020 (reduced TRAN needs)
- Manageable debt burden
- Minimal pension and healthcare liabilities
Economic Indicators
- Strong local economy (state government and University of Wisconsin)
- Dane County metrics:
- Per capita gross county product: 127.9% of U.S. level
- Per capita personal income: 112.6% of U.S. level
- Steady tax base growth from development
Key Challenges
- Declining enrollment trend (expected to stabilize)
- Staff shortages requiring competitive compensation
- Environmental risks from potential flooding
Upcoming Events
- November 2024 referendums:
- Operating levy increase ($100M over four years)
- $507M bond referendum for facility improvements
Financial Management
- Reserve policy: 10-15% of expenditures (currently 17.4%)
- Conservative budgeting practices
- Regular long-term forecasting
- Quarterly financial reporting
- Three-year facilities plan updates
Rating Outlook
- Downgrade possible if: Salary growth outpaces revenues, causing reserve decline
- Upgrade possible with: Improved policies and higher reserves