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I just spoke with San Diego County Taxpayers Association President Lani Lutar, who wanted to clarify the quotes we used from her in our story on school districts’ use of their reserves.
She pointed out that reserves aren’t the only thing a credit rating agency looks at.
“There are a number of things that I believe credit agencies look at,” Lutar said, “and my understanding is, reserves are a component of that.”
Other factors would include whether a governance group had policies on use of reserves and plans to rebuild their reserves if they deplete them, she said.
“Drawing down on their reserves wouldn’t help their case,” Lutar said. “But we are not the credit rating agency. We have strong views about what we believe, and it is our position that it is not prudent to draw down on reserves for ongoing general fund operating expenses.”