DeKalb school system to issue $38 million in state-backed bonds

The DeKalb County School District is planning to sell $38 million in sales tax-backed bonds on Dec. 19.

Moody’s Investors Service has rated district bonds at a subpar Aa3, in part because of deficit spending. These new bonds, however, get a boost to Aa1 because of state backing, Moody’s announced Thursday.

The Georgia Department of Education will likely back the bonds with state education funds earmarked for local operations, said Mike Rowland, director of facilities services. Should DeKalb default, investors would get paid with state money that normally supplements the general fund, but the risk is slight and Rowland said he’s never seen that happen. DeKalb schools finance chief Michael Perrone said the bonds are for technology upgrades and vehicle purchases.