MCCSC presents two‑year financial strategy after referenda; projects savings from attrition and central‑office cuts as state tax change reduces revenue

At the May 20 meeting of the Monroe County Community School Corporation (MCCSC) Board of School Trustees, Dr. Winston and district Chief Financial Officer John Kenny presented a two‑year financial strategy that relies on natural attrition and cuts to centralized services to close a structural budget gap created by declining enrollment and recent state tax changes.

The plan projects approximately $7.7 million in annual savings from attrition and centralized cost reductions and shows improved cash‑balance projections through 2028 if those savings hold. Dr. Winston told trustees, “we are not there yet, but we are definitely moving in the right direction.”

Why this matters: MCCSC said state legislation limiting property tax revenues will reduce the district’s receipts by an estimated $15 million to $17 million. That shortfall, combined with a cumulative enrollment decline of about 830 students since COVID and rising payroll costs, prompted the two‑year strategy to align staffing and spending with available revenue.

Most important details

- Referendum spending and context: The district reported that voter‑approved referenda from 2022 and 2023 have directed roughly $22.6 million a year to approved areas including early learning, teacher/staff pay, curricular enrichment and school supplies. The 2022 referendum totaled about $36.9 million across the period cited; district leaders said about $24.6 million of that went to teachers/salaried staff and $9.9 million to support staff.

- Structural drivers: MCCSC leaders cited three structural pressures: (1) a long‑term enrollment decline of roughly 830 students since the pandemic (a cumulative education‑fund loss of about $22.4 million), (2) payroll expense growth (roughly a 31% increase over three years), and (3) new state tax limits enacted in 2023 that are reducing expected referendum and operating revenues.

- Staffing changes and savings: As of May, the district identified 198 positions that will be or are vacant by August because of retirements and resignations; some vacancies will be filled, and the district is reviewing each case. In addition, the district identified 83.1 full‑time‑equivalent positions for reduction through centralized position eliminations, representing about a 10% departmental spending cut for certain central offices. Mr. Kenny said those combined changes are the basis for the $7.7 million in projected annual savings.

- Cash projections: Financial projections presented to the board included three scenarios. A baseline “no change” projection showed a significant multi‑year decline in cash balances through 2028. Updating that projection with actual first‑quarter 2025 data and legislative revenue changes reduced the average annual structural imbalance. Applying the district’s attrition and centralized savings assumptions produced a materially improved projection, with the district showing a positive combined cash balance in 2028 under those assumptions.

Public comment and staff concerns

Several public commenters and union representatives raised concerns during the meeting about layoffs, clarity of reduction‑in‑force (RIF) policy and administrative pay data.

- Eric Nolan, speaking as MCEA board member‑elect, reported an analysis of Indiana Gateway payroll data that showed larger increases in administrator salary totals across 2022–2024 than the numbers in the district’s two‑year strategy materials, and he asked the board to explain the discrepancy.

- Jenny Novocucera, president of the Monroe County Education Association, asked the board to adopt a formal reduction‑in‑force policy, saying a written policy would make “it crystal clear who stays and who goes” and reduce legal risk. She referenced Indiana code and a court case (Elliott v. Madison) as reasons to codify procedures.

- Angie Shelton, speaking for the NCEA membership, said she learned that “61 support staff positions were eliminated today” (as presented in the personnel report) and urged the board to consider targeted alternatives such as retirement incentives that could preserve lower‑paid positions. Shelton added that required RIF timelines under state law fall between May 1 and July 1 if RIFs occur.

Board response and next steps

Dr. Winston said administrative salaries and reporting are under review and that “every administrative position that exists in the corporation…is under review and consideration.” He acknowledged that reductions could include some building‑level administrative positions and emphasized that decisions will be aligned to enrollment and revenue. John Kenny said potential one‑time offsets (bond revenue, federal bus rebates, solar rebates) are being explored but are not guaranteed and were not included in the structural projections.

Formal actions taken during the meeting

- The board approved the personnel report, the consent agenda, donations and contract awards by voice vote. The personnel report approval preceded the public comments that referenced specific eliminations; the district’s presenters described retirements, promotions and separations in that report.

What the presentation did not decide

The board memo and presentations identified positions for review and reduction but did not record final individual layoff decisions at the meeting. Dr. Winston and Mr. Kenny said centralized position eliminations, natural attrition, and further reviews will continue; some identified vacancies may be filled after review.

Outlook

District leaders said they will provide quarterly updates on the two‑year strategy and cash projections and continue to refine assumptions as state funding information and vacancy decisions evolve. The board’s next regular meeting is scheduled for June 24, when trustees will have an opportunity to request additional detail or follow‑up. Members of the public were told to request more information by email if needed.