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How Tawas Area Schools Revenues as a Percent of Debt Payments Compares to its Geographic Peers

Of the 9 Districts with data within the Tawas Schools Comparable Districts Peer Group, Tawas Area Schools, with an Revenues as a Percent of Debt Payments of 4635.1%, places 2 for fiscal year 2018. The Tawas Area Schools 4635.1% expenditure percentage is 290.9 more than the region average of 4,344.2%.

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Why it Matters: The debt service coverage ratio asks the question how susceptible is a district to not having the ability to pay off their debt. Debt service is the amount of principal and interest that a district must pay each year on long-term debt, plus the interest it must pay on direct short-term debt. As debt service increases, it adds to a district's obligations and reduces its expenditure flexibility. This metric is calculated by dividing the reported debt service by the district's revenue for the General, Special Revenue and Debt Service Funds. Care must be used in evaluating this indicator. A high debt service ratio may indicate a district that has taken on too much debt but it may also indicate that the district has taken an aggressive approach to debt repayment and is paying down their debt quickly. Similarly, a low debt service ratio could indicate a district is strong financially and can finance most capital projects through their operating budget. It may also indicate that a district is financially weaker and has deferred capital projects and allowed important infrastructure to deteriorate. (n085) (o151)

Data Source: The school district financial data comes from two sources. Historic data is provided by downloads from the Michigan Department of Education, Center for Educational Performance and Information (CEPI) Financial Information Database (FID). Future data is loaded by the respective school district financial department. (n040)

Data Table

District NameISDTotal
Revenues
Total
Debt Service
Debt Service as a Percent
of Revenues & Debt Service Funds
*Rank
Alcona Community SchoolsAlpena-Montmorency-Alcona ESD$8,694,741$36,64023730.2%1
Bangor Township SchoolsBay-Arenac ISD$27,604,893$1,059,3712605.8%3
Hale Area SchoolsIosco RESA$5,026,580$643,552781.1%9
Oscoda Area SchoolsIosco RESA$15,653,713$1,353,7761156.3%8
Pinconning Area SchoolsBay-Arenac ISD$14,839,101$995,4501490.7%6
Standish-Sterling Community SchoolsBay-Arenac ISD$17,874,249$1,066,7501675.6%5
Tawas Area SchoolsIosco RESA$13,210,035$285,0004635.1%2
West Branch-Rose City Area SchoolsC.O.O.R. ISD$25,368,583$1,430,7501773.1%4
Whittemore-Prescott Area SchoolsIosco RESA$9,611,038$769,0081249.8%7

*showing the rank number within the 9 districts in the Northern Lower Peninsula Region