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Beachwood City Schools' Stock Portfolio Stronger Today Than Friday

Federal credit rating downgrade has not affected district's stocks, credit rating

Beachwood City Schools’ finances are safe for now despite the S&P’s decreased credit rating for the federal government.

Treasurer Michele Mills gave a short report at Monday’s Board of Education meeting.

The federal credit rating downgrade could have affected the district in two ways, said Mills: the value of its stocks portfolio could have decreased, and the district’s credit rating could have decreased.

But neither outcome occurred.

The district’s stocks portfolio — which, by state law, includes secure, liquid, long-term investments — saw decreased interest rates and increased prices, said Mills.

“Our portfolio is worth more today than it did Friday,” Mills added.

All AA credit ratings for agencies that may be dependent on the federal government went under review after the federal government’s credit rating was downgraded from Aaa — the highest attainable — to Aa+, said Mills.

Moody’s Investors Service determined that Beachwood City Schools’ credit was not dependent on the government and confirmed its Aaa* rating.

But the district will continue to monitor its stocks, like the rest of the country, Mills added.

“I think it’s a signal to the U.S. government to really get its financial house in order,” said Mills. “We’ve been doing that as a state all along, and it’s been very painful.”

Editor's Note: The original version of this article reported that the schools' credit rating was Aa.

Steve Rosen August 09, 2011 at 06:40 PM
Michelle Mills is a wonderful asset to the system.
Jane Smith August 11, 2011 at 11:38 PM
Financially Beachwood Schools are in great shape...that is due to the taxpayers of this city. We are spending twice what the Solon taxpayers are spending per pupil..and Solon is ranked # 1 while we are #6. When will we address this? When will we objectively look at what is going on with our schools? We an add a $35 milion dollar high school that has already had two "adjustments" for being over budgeted without haven broken ground....when do we start holding this Board and Administration accountable? The comment by the one reader that the "Administrative Restructuring" is like an annual folly at our Schools, and deflects from the performance issues. As a previous educator, and resident of Beachwood, I hope we taxpayers and the future Board begins to look at these things.

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