Why it Matters: This variable is computed by subtracting Expenditures from Revenues for a given year. This figure is then divided by Expenditures. If the number that results is less than -0.01, this indicates a district has a nontrivial operating deficit and this district receives a score of 1. If the district does not have an operating deficit, or if this deficit is trivial, the unit is given a 0. A chronic trend in deficit spending is a sign of fiscal distress. For this reason, the indicator score is based on three years of fund spending. (n056) (o134)

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)