- Associated Press - Friday, October 2, 2015

TOPEKA, Kan. (AP) - A major financial rating agency describes Kansas’ new school funding law as “negative” for local districts’ credit and creating financial stress for some of them.

Moody’s Investors Service issued a report Friday citing a new annual budget for the state’s largest school district in Wichita that calls for higher local taxes and spending cuts.

The new law enacted in April replaced the state’s former per-student aid formula with grants based on districts’ previous funding. It was designed to provide stable funding.

But Moody’s said the new law “disadvantages” growing districts by not automatically increasing their aid.

Gov. Sam Brownback’s office noted the state is spending more than $4 billion a year on its schools, and spokeswoman Eileen Hawley said the new law is temporary until another formula can be written.

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