CHICAGO -- Moody's Investors Service said yesterday that the ratings of 60 Michigan school districts are in jeopardy in the wake of the state Legislature's passage this week of a bill that eliminates school operating property taxes as of next July.

Paul Devine, a vice president and manager of the Great Lakes region for Moody's, said the Legislature's action "introduced risk to bondholders" because it eliminated the existing funding mechanism for schools without providing an alternative.

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