Longview, TX — Hallsville ISD's financial rating has been downgraded and its outlook demoted to "negative" by a credit rating service, district officials said this week.
Moody's Investors Service, a credit rating agency, lowered Hallsville ISD's rating from A3 to A1, according to the report Moody's provided to the district. The rating affects about $91.7 million in debt secured by a direct and continuing ad valorem tax levied on all taxable property in the district, the report said.
Moody's noted Hallsville ISD's strengths as socioeconomic indices that trend slightly above state and national medians, as well as a new management team in place with strong goals of restoring Hallsville ISD to a healthy financial position. Weaknesses included a depleted general fund balance, a "significant" retraction of taxable assessed value because of litigation, no revenue raising flexibility associated with state aid cuts for the upcoming school year, and continued taxpayer litigation.
"Hallsville ISD agrees with the statements, summary, and the strengths and weaknesses as outlined in the report," district spokeswoman Carol Greer said. "Through the budget process our board has been working diligently to continue to stabilize our budget, as well as provide budget transparency to our patrons."
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