(CLAIR) – Fitch, a credit rating agency, has recently upgraded Simi Valley USD’s credit rating from ‘A’ to ‘A+’. This upgrade shows that the district has been doing well financially in recent years, consistently increasing its reserve funds. The district has had operating surpluses for 6 out of the last 7 years and is expected to have another surplus for the 2022 fiscal year and a surplus for the current fiscal year.
As reported by Fitch, following are 13 financial facts about Simi USD that show our district is in great shape:
- In 2021, the financial situation of Simi Valley USD improved, with $33 million in reserves available for any purpose, which is almost 17% of spending.
- The revenue of the general fund increased by 8% compared to the previous year because of higher government funding and extra COVID-19 funds.
- The expenses grew slightly by 1%, resulting in a profit of $7.3 million, which is 3.7% of spending.
- The district predicts that it will have a profit of around $3.1 million (1.5% of spending) in 2022, reversing a previous loss of $3.6 million.
- The district has had a profit in the general fund for every year since 2014, except for 2020.
- The general fund balance has grown from $7 million to $33 million, with an average increase of $3 million per year.
- The general fund balance as a percentage of spending has increased every year except 2020, from less than 5% in 2014 to almost 17% in the current year.
- The district’s first budget prediction for 2023 shows a profit of $13.4 million, due to higher state funding than expected.
- The number of students has decreased by 1.5% to 15,771 in 2022, after decreasing by 3.4% in 2021.
- The number of students has been decreasing for 15 out of the last 16 years, with the exception of a small increase in 2020.
- The district plans to build new housing developments that could attract more students in the future.
- The district received $35 million in COVID-19 funding from the government, using $2.5 million in 2021, $12.9 million in 2022, $10.7 million in 2023 and $9.2 million in 2024.
- The district expects to save money in the future by reducing staff that provide educational and emotional support related to the pandemic.
The Simi Valley Unified School District is one of Ventura County’s largest school districts. It operates 28 separate schools and serves approximately 16,450 students. Within the district there are 18 elementary schools, three middle schools, three high schools, a continuation high school, an adult school and an independent study school.
Fitch Ratings is a global credit rating agency that rates the creditworthiness of companies and governments. A high credit rating from Fitch indicates that our district is financially stable and is less likely to default on its debts.
