The good news Manteca Unified School District received recently will only multiply into more good news in the future.
The district has been notified that Standard & Poor’s Ratings has raised its general obligation bonds rating from an A+ to AA.
That rating upgrade, according to the notice, reflects S&P’s “view of the district’s positive operations for the last four fiscal years,” the notice stated, as well as MUSD’s “stable average daily attendance” – the main factor in obtaining state funding – as well as the district’s “good financial management policies.”
Superintendent Jason Messer shared the good news at the last Board of Education meeting
“This is unusual,” he said of the upgraded rating which, he added, is “considered a very high rating in this area.” He also cited the district’s conservative fiscal practices as a contributory factor to the good news from Standard & Poor.
What this news translates to, he said, is “a lot of money” for the district in that it will allow the district to generate general obligation bonds at a much lower interest rate, and that could mean millions of dollars saved, Messer explained.
Furthermore, he said, students in the Weston Ranch area will benefit from MUSD’s upgraded rating as well. About 25 percent of Manteca Unified students are from the Stockton area by virtue of the fact Weston Ranch is part of the incorporated City of Stockton. So these students will benefit from MUSD what Stockton Unified School District won’t be able to provide, Messer said.
The Standard & Poor notice also noted that the rating is not expected to change “within the two-year outlook time frame.” In fact, the rating could still go up “if the district’s economic indicators improve.”