CHICAGO — At least eight out of 13 Ohio school districts it rates were successful in asking voters for new money on the May 5 ballot in what is a positive credit action for those districts, Moody's Investors Service says.
The ratings agency only looked at those districts it rates.
"Many Ohio school districts rely on periodic voter approval of new levies in order to address inflationary growth in operating costs and maintain fiscal stability," Moody's analyst Matthew Butler wrote in the brief comment that is part of the agency's weekly outlook. "New local tax revenue also frees Ohio school districts from total reliance on the state to fund operations."
Among the winners in the May 5 election: Genoa Area Local School District, Keystone school district, and Monroeville.
"All three districts faced narrowing liquidity without additional revenue and the new taxes will help stabilize financial operations," Butler said.
He noted that the approvals mark a turnaround in voter action: Keystone voters in had rejected 10 consecutive levy requests since 1995 and voters in Monroeville and Genoa had rejected similar 2014 requests.
For the five districts that saw rejected requests, pressure could grow, Moody's said. In particular, Walnut Township and Woodmore will "face further fiscal and credit stress" as a result of the defeat.
The remaining three districts will face "much more moderate credit pressure," Moody's said.
Across the state voters rejected 13 of 17 school levy requests last November.
