Board approves petition to extend repayment on $12 million common‑school loan to ease cash flow

The Muncie Community Schools Board voted to approve a petition asking state officials to extend the repayment term on a $12 million common‑school cash‑flow loan from June 30, 2028, to June 30, 2030, a change district leaders say will ease near‑term pressure on the education fund.

Board finance presenter (speaker 8) said the proposal would lower the district’s monthly payment beginning in July “from $222,000 a month right now” to “a little over 96,000 a month,” reducing the district’s cash‑flow burden for the 2026 fiscal year. Committee member (speaker 3) added that the loan is “a non interest loan,” and that stretching the term would not increase the district’s interest costs.

Why it matters: District officials told the board the change would improve cash balance flexibility as the district prepares for enrollment and funding changes this year, and would create room to build reserves ahead of legislative funding impacts expected in 2029. The loan originated under a 2019 agreement tied to distressed unit assistance; the board said it will present the petition to the state Board of Finance/DUAB on May 12.

Board action and process: A motion to approve the petition was moved and seconded during the meeting and passed by voice vote. Board members did not record a roll‑call tally in the transcript; the chair declared the motion approved and trustees voiced an aye.

Next steps: If the state board accepts the petition, the district’s monthly obligation will be reduced beginning in July under the amended schedule; if the state declines, district officials said they are prepared to meet the current payback schedule and project they can pay off the loan within two years under existing plans.

The board did not provide a formal written vote tally in the meeting transcript; officials said they will present a concise factual case to the DUAB/Board of Finance on May 12.