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Our Labor Day started off with some extremely small pockets of rain for the coast this morning. Most areas should see a rain-free day, with a 30% coverage of showers in our forecast. Highs today will reach the lower 90's. More moisture leads to increased rain coverage for Tuesday. A 50% coverage of showers returns for Tuesday. Highs will ...
BISD downgraded by investors service due to debt obligations
BEAUMONT - Moody's significantly downgraded the Beaumont Independent School District's general obligation rating Monday and assigned a negative outlook, suggesting it could" further be downgraded.
The downgrade affects its $183.8 million in debt obligations for the district.
The downgrade reflects severe governance problems plaguing BISD, including lack of internal controls, a divided board, as well as allegations of fraud and multiple pending investigations.
KFDM spoke with two BISD trustees for their reaction to the new rating.
"I am not surprised one bit at the downgrading by Moody's with a negative outlook. One of the factors is the dwindling reserves," trustee Mike Neil said.
Neil went on to say: "They commented that the reserves a the end of this budget year could decline to about $23.2 million. Last night we found out that that number could be below $5 million, down from $42 million three years ago. Although the state did cut funding to school districts, BISD has done a horrible job making the needed adjustments to its operations to account for these cuts. That is extremely concerning to me as a trustee and should be to the entire community."
KFDM News also contacted trustee Zenobia Bush, who said: "Am I happy? No, but it's not a poor rating. We just have to make sure that we put things in place to make sure we get on the right track and stay on the right track. I think what we're seeing from the consultant group who has been with us in the last few months has put in a few controls that will help us get back to where we were."