Hardship

COVID-19 puts our children at high risk of long-term hardship

We as governors — along with decision makers in state legislatures, school boards, workforce boards, and city and county governments — assess each day the growing damage of COVID-19 to our economic, educational, social and health care systems. We are especially concerned about the millions of young Americans who have been away from school for many weeks and graduating seniors who seek to enter the workforce and higher education. 

The latest national data highlights the growing risk that we may lose a critical part of our next generation. 

Federal Reserve Chairman Jerome Powell noted that 40% of all households earning $40,000 or less lost their jobs in March. Further, recent surveys of teachers reveal increases in truancy (27%) and dramatic declines in student engagement — up to 50% or higher in some cases, especially among poor and vulnerable youth, as the school year came to a close.

We are honored

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University of California Faces Hardship, Eager Bond Buyers

(Bloomberg) — The University of California knows it faces significant repercussions from the coronavirus pandemic — though it can’t say how extensive. Yet it didn’t have any trouble borrowing money from Wall Street.

The system sold $2.3 billion in revenue bonds Thursday, its first sale since California, dealing with its own shortfalls triggered by the crisis, slashed the university’s funding by 12% in the fiscal year that started in July. The cuts could be reversed if additional federal dollars come through, a scenario that remains uncertain.

The offering of bonds with a final maturity of 2050 shows the dichotomy that’s emerging in the $3.9 trillion municipal market that finances states, cities, schools and other local institutions. While the virus has led to plummeting tax revenue and skyrocketing costs, some issuers are better equipped to manage the turbulence. And when it comes to colleges and universities, investors are weighing which are

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