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MCCSC board authorizes 2026 budget advertisement as leaders outline multi-year plan to close a $30M gap
Summary
Superintendent Winston and CFO Matt Erwin told the Board of School Trustees on Aug. 26 that declining enrollment, cuts to state and federal funding and rising costs have produced a structural imbalance; the board authorized advertising the 2026 budget and adopted three facility-related resolutions as part of broader fiscal planning.
The Monroe County Community School Corporation board voted Aug. 26 to authorize advertising its 2026 budget after senior staff described a 24-month strategy intended to restore financial balance.
Interim Superintendent Dr. Winston told the board the district faces “strong headwinds” — local population declines, reductions in state funding, the end of pandemic ESSER dollars and higher operating costs — that have driven expenditures above revenue. He said the corporation lost about $1.5 million in 2025 when a curricular materials grant was eliminated and expects continuing revenue pressure tied to recent state legislation (SEA 1).
“Because of these facts, MCCSC is experiencing declining enrollment, which has a direct impact on the revenue that we receive to support instruction,” Dr. Winston said, and he framed the administration’s strategy as measured steps to align staffing and spending with enrollment.
CFO Matt Erwin presented fund-balance and cash-flow projections, including a comparison to 2025 levels and modeled assumptions for future years. Erwin said the overall budget submission is down about $6,200,000 from 2025 and that, under current assumptions without additional corrective action, the corporation could face more than a $30,000,000 deficit by 2028. He said the administration expects to finish pension payments in 2026 and projected that the staffing-alignment measures could save approximately $8,100,000 by the same time next year if implemented as planned.
Erwin explained several technical budgeting points: the district uses the Department of Local Government Finance guidance to input 85% of last year’s assessed value for Gateway filings, sets conservative ceilings on levy rates when advertising so there is room to reduce later, and includes bus replacement and capital project plans in the materials posted to Gateway. He also described one-time funds — including expected rebates related to energy-efficiency projects and taxable general obligation bond reimbursements — and cautioned that those funds should be used only for one-time expenses or to shore up cash balances, not to fund ongoing obligations.
Board members pressed staff for clarifications about referendums, SEA 1 and the district’s interactions with local governments. Erwin said the district’s two referendums represent roughly 18% of the operating budget for 2025 and warned that SEA 1’s effect on assessed value will reduce referendum-derived revenue over time.
“SEA 1 is going to continue to artificially drive down AV,” Erwin said, adding that applying the same tax rate to a lower AV produces less revenue. Dr. Winston said the administration is coordinating with municipal partners and consultants to model longer-term impacts.
The board approved the motion to authorize advertising the 2026 budget (moved by Ross; seconded by Asia) by voice vote. The administration plans a public hearing on the budget for Sept. 23 and an adoption vote in October.
Votes at a glance (board action during the meeting): the consent agenda was approved; donations totaling more than $9,000 were accepted; instructional materials related to human-instruction requirements were adopted; the personnel report and contracts were approved; the board authorized advertising the 2026 budget; and the board adopted three facility/financing resolutions (2025-09 determining project need, 2025-10 approving a lease form for building-corporation financing, and 2025-11 reapproving the building corporation). Each motion passed by voice vote as recorded in the meeting minutes.
Why it matters: The budget authorization begins the formal public process that allows the community to review detailed budget materials on Gateway and at the public hearing. Administration officials said the combination of staff alignment, conservative budgeting and disciplined use of one-time funds is intended to prevent deeper structural deficits while protecting classroom instruction wherever possible.
What’s next: The district will post the advertised materials on or about Sept. 2, hold a public hearing Sept. 23, and bring the budget back to the board for a final vote in October.
