Over the past few weeks, Florida school districts have publicly focused their attention on how to deal with budget cuts in terms of layoffs, program reductions and the like. Behind the scenes, they're also keeping a close eye on how the state's many changes to school funding - real, proposed and expected - will have on their ability to remain active in the bond market.

It's a critical piece, especially for districts that have expansion plans, but also for those that already are in the market for support of past capital projects. The Legislature's decision to reduce district's local tax rate for capital projects by .25 mills, for instance, could push many districts beyond their borrowing limits.

Financial advisors have told the Gradebook that bond ratings agencies see the tax change as just one of many factors depressing the Florida school bond market, possibly leading to downgrades, reduced borrowing capacity and perhaps even downright rejection of some bond sales. Already some districts, including fast growing Pasco County, have seen the market send back some bonds because of market conditions.

"This is a major concern for us," Pasco superintendent Heather Fiorentino told the Gradebook, adding that her finance department is exploring the issue thoroughly, as the district has continued plans to build more schools.

Many of these issues are super complicated. The Bond Buyer reports with fine detail this morning about the current situation, noting at least 14 districts had sold more than $2.34-billion in debt by this time last year. This year, six districts have sold $251.5-million.