Muncie Community Schools reports strong year-end balances, warns loan payoff and tax caps could squeeze operations

Muncie Community Schools officials told the board they closed 2024 with healthy cash balances but signaled tightening years ahead as a back-loaded state loan and property-tax caps reduce operating flexibility.

Brad Jerome, the district’s finance lead, reported "state basic grant revenue of a little over $47,000,000," an overall checkbook balance of about $35,200,000 and an education fund balance of roughly $15,500,000. Jerome said the district also reduced long-term debt and paid about $10.6 million in long-term debt in December, and that the outstanding state loan balance has been reduced to about $7.9 million.

Jerome told trustees the district transferred money into its rainy-day account late in 2024 and ended the year with a rainy-day balance in the low millions. "We did transfer about 1,400,000 into rainy day at the December," he said, and described continuing cash-flow planning for 2025 and 2026. He also outlined planned capital work funded from bonds sold in November 2024.

Superintendent Dr. Reynolds and the business office both flagged the continuing effect of the property-tax "circuit breaker" caps and a state loan payoff schedule that is heavily back-loaded. Jerome warned that without legislative relief the district’s operating cushion could narrow after 2026. "If we get beyond '27 it's going to become perhaps more challenging," he said, noting that the district is exploring options with bond counsel and consultants.

Trustees approved the annual financial report by voice vote after a motion was moved and seconded; the minutes record no opposition. The board also gave statutory authorization for the administration to transfer up to 15% of education-fund revenue to the operation fund during 2025, a move trustees said is required by statute and intended to preserve operational cash flow.

On data security, Dr. Reynolds told the board that "PowerSchool experienced a cyber security event in December, and we were notified last week about a possible breach," and that the district had posted PowerSchool’s response on its security page and in the quarterly newsletter. He said the event was associated with the vendor PowerSchool and that district communications will continue as vendor updates arrive.

Looking ahead, the business office said it plans more detailed operational items for the board in March, including discussion of bond planning for projects such as a field-house boiler replacement and parking work tied to bond proceeds. Jerome emphasized that while the current balances are solid, the district must manage steadily rising costs and statutory constraints on transfers and property-tax revenue.