The Monroe County Community School Corporation is seeking a $6.2 million reduction in its proposal for next year’s budget, part of a bid toward financial balance for the school district.
The attrition of this year’s budget of more than $187 million to about $181 million in 2026 comes amid uncertainty in several budgetary factors, particularly the impacts of state legislation and declining enrollment.
At the district’s Board of Trustees meeting Tuesday, the 2026 budget took another step forward in its hearing. The board will discuss the budget’s adoption at its Oct. 28 meeting.
What spending is being reduced?
The education fund, which goes toward teacher pay, classrooms and learning, is seeing a reduction of $1.4 million.
The operations fund, which funds overhead costs like administrator salaries, transportation, support staff, maintenance and more, would face a $6.3 million decrease.
Last week, The Herald-Times reported that 15 new administrators had been added to MCCSC payroll since 2019, with an average annual compensation of about $84,600.
In May, the district culled 61 non-classroom positions — staff in cleaning, food service, health and more. In June, the district announced it wouldn't lay off any teachers in the 2025-26 school year.
Chief Financial Officer and Treasurer Matthew Irwin emphasized that the budget numbers presented aren’t actual allocations, but rather “guardrails,” allowing for flexibility.
Why is the district reducing its budget?
The financial impacts of this year’s state legislation have projections. But they’re still uncertain, board member Ashley Pirani said.
“When it comes to legislation, it’s always a moving target,” Pirani said.
Senate Enrolled Act 1, a 2025 law reforming local income taxes, is expected to reduce MCCSC’s revenue by about $17 million over the next three years, including a loss of almost $3.5 million next year.
After 2028, MCCSC will have to start sharing property tax revenue for operating expenses with charter schools.
But the priorities of next year’s state legislature are hard to predict in certain terms. Several unsuccessful items this year could be back on the table again in 2026, board president April Hennessey said at the meeting.
“They're not going to show their hand too early, because then people would be able to prepare earlier,” Hennessey said.
Irwin said the district is taking the uncertainty into account in its budget, underscoring its need for “flexibility.”
Also paramount to the district’s future funding, Irwin said, is enrollment.
Enrollment has fallen from previous years. According to MCCSC, the district has lost more than 800 students from the 2020-21 school year to the 2023-24 school year and is projected to lose more over the coming years. It has led to substantial funding reductions from the state.
In the 2024-25 school year, MCCSC had 779 graduates and 619 kindergarteners. In the 2018-19 school year, those figures were 769 graduates and 819 kindergarteners.
The causes are complex and involve the rise of charter schools, declining county population and more, but the result is fewer families with school-age children. The trend is not unique either — it’s happening nationally and statewide.
What’s next?
The budget is up for adoption at the district’s board meeting Oct. 28 and will receive its 1782 notice in December from the Indiana Department of Local Government Finance.
The 1782 notice is the final step in MCCSC’s budget process — the DLGF will send back its official budget, tax rates and levies to the district. MCCSC can then request corrections and certify the budget.
CORRECTION: This article has been updated to correct the spelling of April Hennessey's name.
