The Monroe County Community School Corporation eliminated 61 custodial, food service, health aide and other non-classroom positions as part of a plan to combat future economic losses due to declining enrollment, increasing payroll and state legislation.
According to a fiscal analysis, MCCSC is set to lose almost $3.5 million next year. Superintendent Markay Winston said in an April Board of Trustees meeting the loss would lead to staffing cuts.
The Monroe County birth rate has declined and the district has seen reduced enrollment after the COVID-19 pandemic, resulting in less revenue. Since the 2019 school year, enrollment decreased by more than 800 students, resulting in a projected $22.4 million loss. Despite this, the payroll expenses for employees has increased by over 30% in the past three years, costing the corporation $28.6 million according to the fiscal analysis.
Senate Enrolled Act 1, a tax relief proposal signed into law in April, also impacts MCCSC’s earnings by limiting the revenue they can receive from property taxes. SEA 1 is expected to cause a deficit of $17 million over the next three years. Winston also mentioned a 2023 property tax cap bill was now impacting school corporations across Indiana, reducing the revenue of the referendum. She said the district will receive $1.2 million less than anticipated, adding to budget constraints.
In a press release, MCCSC announced that most of the total 198 positions that are vacant due to natural attrition or anticipated to be vacant will remain unfilled, though they will be individually evaluated.
The school district adopted a two-year financial plan to limit expected losses. Its first quarterly update, presented at a trustee meeting Tuesday, outlined plans to save over $7 million annually by leaving vacancies open and reducing positions.
“We are very sensitive to the fact that those are individuals’ livelihoods, and we don’t take that lightly,” Winston said. “We recognize also that many of those positions were initiated during COVID era, and we feel as if those positions can and should be eliminated at this particular point in time.”
She said the natural attrition of some centralized positions, plus over fifty service position reductions, would represent a 10% reduction in departmental spending, though effort was made to minimize the impact on the district’s classrooms.
Erich Nolan, a Monroe County Education Association board member-elect, asked for clarification at the meeting regarding budget cuts despite administrative salaries seemingly inflating over the past three years.
The sum of all administrative salaries in the MCCSC increased from $7,725,797.45 in 2022 to $8,469,155.88 in 2023 and $9,273,274.36 in 2024, according to the Indiana Gateway employee compensation report. Nolan pointed out the numbers were higher than those reported in the two-year strategy.
Jenny Noble-Kuchera, the MCEA president, spoke during the meeting about a petition, signed by 558 members, that asked the school board to adopt a reduction in force policy clarifying which positions were vulnerable to being eliminated.
Another MCEA board member, Angie Shelton, highlighted the potential pitfalls of losing non-classroom staff.
“It doesn’t seem like eliminating lowest paid positions is one of the most strategic ways to reduce costs,” Shelton said. “We have a lot of people who would be willing to retire a few years early with any kind of incentive.”
Winston said the board was looking into non-personnel reductions that would reduce central support services and that operational gaps in certain areas were inevitable due to cuts.
“Everything is on the table at this moment in time for consideration,” Winston said. “We cannot keep staff on the payroll that we can’t afford to pay; that’s a disservice to our community and that would not make us a good steward of the finances that we’ve been entrusted.”
According to the strategy update, MCCSC payroll comprises 85% of their budget. The district projected a cash balance loss of over $30 million by 2028 if they did not take action towards financial stability. In 2024, MCCSC required a $7.3 million adjustment to maintain a level cash balance.
In 2022 and 2023, voters approved eight-year tax referenda for MCCSC to fund early learning, teachers and staff, school supplies, curriculum enrichment and student support. According to an impact report, $34.5 million was invested in teachers and staff. They received a $4,500 salary increase in 2022 and support staff received hourly raises. The referendum fund in 2022 and 2023 made up 18% of the MCCSC’s total budget.
The board will present its next two-year strategy quarterly update in August.
Editor's Note: This story has been updated to more accurately reflect the reasons behind MCCSC's projected revenue loss and the appropriate student disenrollment numbers. The IDS can confirm this version of the story is up-to-date and accurate.
