...S&P Global Ratings lowered its underlying rating (SPUR) on Laurel Highlands School District, Pa.'s general obligation (GO) debt one notch to '###+' from 'A-'. The outlook is negative. At the same time, S&P Global Ratings assigned its '###+' long-term rating and negative outlook to the district's series 2018 GO notes. The rating action reflects our opinion of the district's deteriorated fund balance during the past five fiscal years due to structural imbalances with no formal plans to align revenue properly with expenditures during the next two fiscal years. The district has experienced multiple years of negative financial operations due to, what we consider, structural imbalances. Management was unable to raise sufficient revenue consistently to keep up with increasing expenditures while depending on one-time budgetary items and measures to avoid further fund balance decreases. During the past five fiscal years, the district has posted negative financial operations because costs have outpaced...
