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Will your school district declare bankruptcy in 2011?

By Ron Skinner posted 12-29-2010 12:11

  
I hope the answer is no, but one Washington education pundit is predicting that at least one large school system will declare bankruptcy in 2011.  The theory is that states might create incentives for school systems to go into "restructuring" like GM in order to renegotiate labor contracts and other obligations.

If it works, he writes, look for the "idea to spread like wildfire."

But if this does happen, will it change how the rating agencies view the stability of districts in general?  Time to make sure your financial house is in order.
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01-03-2011 12:33

It's only a matter of time for all of us........unless the economy rebounds and our current revenue stagnation comes to an end....maybe not this year ...maybe not next year .....but the light at the end of the tunnel from this economic downturn is very faint ......