The 'BBB+' Standard&Poor's underlying rating (SPUR) on Cleveland Municipal School District, Ohio's GO bonds reflects the district's: Access to Cleveland, Ohio's deep and diverse economic base; Improved financial performance, with long-term structural balance contingent on voter approval of new operating levies; Labor contracts for the largest unions, including teachers, in place through 2005--the contracts can be reopened in 2004 for renegotiation of an extension; Large capital facilities plan, which will be two-thirds funded by the state; and Voter support of the capital facilities plan with the approval of $330 million in unlimited-tax GO bonds. Mitigating factors include the district's: Declining enrollment and poor academic performance; and Fiscal 2003 general fund budget, which will draw down cash reserves by
