By Samantha Belcourt
Northeast News
March 11, 2015

Kansas City, Missouri – Kansas City Public Schools has earned a better grade for its academic diligence and fiscal caution on behalf of KCPS students and taxpayers.

According to a press release issued last month, Standard & Poor’s rating services has raised its credit rating for KCPS from an “A” to an “A+”. The company also gave the KCPS a, “stable” outlook. The school district’s balanced budget, financial stability and 2014 provisional accreditation were cited as the reasons for the credit rating increase. This upgrade means that it will cost the KCPS less to borrow money by issuing bonds, if it chooses to do so in the future.

“Basically anytime a credit rating interest drops, it looks more attractive,” Al Tunis, chief financial officer for the KCPS, said. “So for a school district to borrow money for capital, it gives the indication to the community that we are stable.”

In the press release, Superintendent R. Stephen Green said he is pleased with this improved credit rating and proud of the hard work done by the KCPS team to make this happen. He added that the improvement is a reflection of the district’s commitment to excellence in everything they do and their, “dedication to building the very best public school system for taxpayers.”

“Ultimately, this can make it easier for us to provide the types of programs, services and facilities our students and staff members need to succeed,” Green said. “It’s a win for everyone.”

S&P is the world’s premier credit rating agency for corporate and public financing bonds. Higher ratings mean people who buy bonds from that issuer have a better chance of earning the promised return. That lower investor risk means that bonds can be issued at a lower interest rate, which decreases the ultimate cost of that debt for the issuer. Tunis said this helps with larger projects.

“With the capital plan, there will be improvements to buildings, but supplies and smaller things come out of another fund,” Tunis said.

In its report, S&P praised budget management and policies at KCPS, highlighting the fact hat KCPS has had a budget surplus in four out of the last five years and its fund balance is healthy. Positive economic trends within the KCPS attendance boundaries also contributed to the positive credit rating.