The 'BBB+' Standard&Poor's underlying rating (SPUR) on Cleveland Municipal School District, Ohio's $125 million unlimited-tax GO school bonds reflects the district's: Access to Cleveland, Ohio's deep and diverse economic base; 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; A trend of operating deficits culminating in the just-announced $100 million deficit reduction plan for fiscal 2005 that requires elimination of more than 800 employees; and The need for a new operating levy, which the district will request in November 2004. The 'BBB+' SPUR on the district's
