Last week's one-day faculty strike at City College of San Francisco over a contract battle is "credit negative" for the college because it sends a strong signal of resistance to the administration's plan to "reduce costs and maintain structural balance," said Moody's, the credit rating agency, on Monday.
City College has lost more than a third of its enrollment during an accreditation crisis that began about five years ago. New revenue streams from the state and city, largely driven by new taxes, have helped bolster the college amid funding declines linked to the enrollment dip. But the new funding is temporary. And City College has reduced its operating expenses by only 15 percent since its accreditation woes began.
"A failure to maintain balanced operations would impede the district’s progress toward full renewal of its accreditation status, which, in turn, would further erode student enrollment and weaken annual revenue support from the state of California," Moody's said.
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