Credit Agency Warns of Bankruptcy Risk for Dallas County Schools

One of the major U.S. credit agencies said Friday that Dallas County Schools is in danger of bankruptcy even if the embattled bus service provider survives a November election where voters could abolish it.Moody’s issued a report on the bus agency which says it is continuing to struggle financially because of its limited ability to raise funds, making it difficult to cover annual payments on existing debt. The report noted that after defaulting on June debt payments, the agency had to borrow money using tax anticipation notes rather than cash on hand to cover costs.“The shortfall will require additional transfers from the DCS general fund and heightens the potential the district may yet file for bankruptcy,” the report says.  Continue reading...