Manatee County School District credit rating upgraded from 'positive' to 'stable'

BRADENTON -- The Manatee County School District's credit rating from Fitch Ratings ticked up again, putting the district in a better position to borrow money in the future.

Fitch Ratings, one of the top ratings standards, moved the district from "positive" to "stable," board chairwoman Karen Carpenter announced Tuesday.

"Many people on the superintendent's team and the board have worked very hard to see we're managing our finances correctly," she said. "That's a great start for the first meeting this year."

The district's credit ratings plummeted after financial mismanagement came to light in 2012 under then Superintendent Tim McGonegal. Since then, under Superintendent Rick Mills and now Superintendent Diana Greene, the district has been trying to move back into a better situation.

With the potential of bringing new schools on line in the next five to 10 years, the district's credit rating will play an important role in securing financing to build those new schools.

In addition to the increased credit rating, the board also looked over proposed language for a debt issuance policy for the district, which would help keep financial meltdowns from occurring again. The policy has not been finalized or put in place by the board.

"The intention is that it holds us accountable for spending these funds as they are legally intended to be spent," said chief financial officer Rebecca Roberts

During the board meeting on Tuesday, the board also heard updates to student and district performance on standardized state tests, known at the FSA.

Last spring, students took the new FSA exams for the first time. The exams are tied to new state standards, a modification of the Common Core standards, which have been adopted by states across the nation.

The testing period was marred by online technical glitches and a number of families and students across the state protested the exams by "opting out."

In most areas, the district averages -- which officials said are still simulation until the state releases the final grade -- fall below state average in almost every category tested. That's on par with how the district performed comparatively on the old tests as well.

District officials discussed a number of strategies they're using in an effort to help boost student achievement, including trying to overcome barriers that poverty creates in the district.

"Even though the bar continues to be raised, this district finds a way to graduate our students," said Deputy Superintendent of Instruction Cynthia Saunders.

Even with all that goes on, Superintendent Diana Greene said teachers are still focused on what matters the most: teaching.

"I want to encourage our teachers to continue to teach, no matter what's going on," Greene said. "It's not all about FSA."

A proposal from the Department of Education and the State Board of Education would remove one-sixth of the full-time equivalent funding districts receive per student for students who fail the Algebra 1 end-of-course exam on the first try, beginning in the 2016-17 school year.

Passing the Algebra 1 end-of-course exam, or a different acceptable exam, is a requirement for graduation in the state of Florida. Statewide, 56 percent of students passed the Algebra 1 EOC exam. In Manatee County, 53 percent of students passed the exam.

Board members were largely against the proposal and expressed anger over the situation.

Districts could regain some of the withheld funding if the student failed the end-of-course exam and also failed the course and then retook the course all over again. But in Manatee County, that's often not the case.

"More than 80 percent are not failing the course, they're simply failing the test. We are vehemently against this being tied to an FTE reduction," Greene said.

District officials said they are not sure why this proposal came about or what the reasoning behind it was. Although it's not originating with lawmakers, board members suggested putting pressure on local lawmakers and representatives to appeal to the Department of Education to keep that proposal from becoming a reality.

"I think they should be our point people to fight this because the DOE will listen to them," school board member John Colon said.

Unless there's action to alter that plan, it'll move forward during the next school year.

Meghin Delaney, education reporter, can be reached at 941-745-7081. Follow her on Twitter@MeghinDelaney.

This story was originally published January 12, 2016 at 9:20 PM with the headline "Manatee County School District credit rating upgraded from 'positive' to 'stable' ."