Newark Public Schools’ Bond Rating Goes Up

NEWARK, N.J. – The ratings agency S & P Global Ratings has raised the bond rating of Newark Public Schools from BBB+ to A-, an indication of the school district’s fiscal responsibility and stable financial outlook.

In its report of the upgrade, S & P Global Ratings noted that it comes amid significant economic challenges in the Newark community and factors beyond the control of the school district or its board of education. “Despite these challenges,” the report said, “the district’s finances have improved over the past few years, and it maintains robust budget monitoring procedures that have supported operational balance.” 

“This is a huge shot in the arm for our district,” said Superintendent León. “The rating increase will let us get the best possible terms of funding for any major capital projects approved by our citizens. That will benefit our taxpayers, our community, and ultimately our students and their families.” He credited the Office of the School Business Administrator and its team for its ongoing work to monitor spending and improve the district’s fiscal practices. The District has received the Meritorious Budget Award from the Association of School Business Officials International for the past two years.

Board President Hasani K. Council agreed. “This A- rating is a testament to the steadfast commitment of our district’s leadership and fiscal responsibility,” he said.  “The Newark Board of Education is proud of the hard work that has resulted in this recognition, particularly School Business Administrator Valerie Wilson and all of the district staff members dedicated to ensuring the district’s financial health.”

The district agrees with S & P for recognizing that Newark’s aging school facilities present the biggest financial challenge to the school district. The report stated, “The average age of [the district’s] school buildings is approximately 84 years, and while the state has committed to fund several new facilities, according to officials, there remain significant needs that the district is likely to service on its own.”