Summary: West Contra Costa Unified School District, California; General Obligation

S&P Global Ratings revised the outlook to negative from positive and affirmed its 'AA-' long-term rating and underlying rating (SPUR) on West Contra Costa Unified School District (USD), Calif.'s general obligation (GO) bonds outstanding. The outlook revision reflects our view of the district's operating deficits in fiscal years 2018 and 2019, and projected deficits through 2022. In our prior review, we had anticipated that the district would maintain its very strong reserve position and realize its plans to eliminate projected budgetary gaps. Updated projections for fiscal 2020 reflect a deficit of $39.9 million, or nearly 10% of expenditures, primarily following increasing expenditure pressure (particularly from state-mandated cost-of-living adjustments and rising pension contributions) and revenue challenges stemming from negative enrollment trends.

...S&P Global Ratings revised the outlook to negative from positive and affirmed its '##-' long-term rating and underlying rating (SPUR) on West Contra Costa Unified School District (USD), Calif.'s general obligation (GO) bonds outstanding. The outlook revision reflects our view of the district's operating deficits in fiscal years 2018 and 2019, and projected deficits through 2022. In our prior review, we had anticipated that the district would maintain its very strong reserve position and realize its plans to eliminate projected budgetary gaps. Updated projections for fiscal 2020 reflect a deficit of $39.9 million, or nearly 10% of expenditures, primarily following increasing expenditure pressure (particularly from state-mandated cost-of-living adjustments and rising pension contributions) and revenue challenges stemming from negative enrollment trends. We understand the district will likely utilize a portion of its available reserves and accumulated other postemployment benefit (OPEB) trust...

Summary