What is MCCSC’s budget?

MCCSC’s advertised budget is $181 million. See our budget webpage for more information, including how the budget will pay for every aspect of running our school corporation.

How can MCCSC afford construction projects? 
When a school corporation needs to finance a construction or renovation project, it issues bonds—borrowing money that is paid back over time. Large construction and renovation projects are paid for through MCCSC’s Debt Service Fund, which by Indiana law can only be used to repay bonds and other debt. The Debt Service Fund gains revenue through local property tax revenue, based on MCCSC’s bond repayment schedule. That is why MCCSC may have funding available to complete construction, but it cannot use that funding for any other purposes, such as employee wages and benefits.

Could revenue be gained by selling the former Herald-Times (HT) building?

Yes. Any revenue gained from the property sale of the former HT building would result in one-time funds that could be reinvested into MCCSC’s Operations Fund. However, the funding would not provide sustainable funds to balance MCCSC’s revenues and expenses. In addition, per Indiana law, the funds could not be moved into MCCSC’s Education Fund that pays teacher wages and benefits.

See School Funds 101 to learn how school corporations have different funds and the laws about what they can be used for. 

Can referendum funds help with MCCSC’s finances?

Yes, but our two referenda funds must only be used for their specific, voter-approved purposes. (See School Funds 101 to learn what the 2022 and 2023 Referendum Funds must be used for.) For context, MCCSC’s referenda funds make up approximately 18% of MCCSC’s 2025 budget.

However, these dedicated funds are facing pressure. Both of our referenda are not receiving the full amounts voters approved due to state legislation that limits the revenue we collect through local property taxes. Because of state legislation passed in 2023, we received approximately $1.2 million less in local property taxes than voters approved for our 2022 Referendum and we will continue to receive less each year. To continue funding the programs voters approved under the 2022 Referendum despite receiving less revenue, we are now using our cash reserves at an unsustainable pace.

Looking ahead, Senate Enrolled Act 1 will further reduce the amount of property tax revenue we receive for both our 2022 and 2023 referenda beginning in 2027.

Why did MCCSC make staff cuts — and what positions were cut?  

MCCSC is facing an imbalance between rising costs and declining revenue. To address this, we launched a Two-Year Strategy to Achieve Financial Balance in February 2025 to achieve long-term financial stability.   

In February 2025, MCCSC began not filling vacancies when employees retired or resigned as the first priority for cost savings (natural attrition), which reduced nearly 200 positions. In May of 2025, MCCSC also reduced operational costs across the corporation and eliminated non-school positions. The majority of the positions eliminated were custodial and health aide roles that were initiated during the COVID-19 pandemic, but reductions were also made in central office administration, support staff, information technology, transportation, and food services. No teachers were laid off.

Many factors led to MCCSC’s Two-Year Strategy. Student enrollment has declined by more than 800 students since 2019, and local demographic trends suggest this will continue. Because MCCSC receives state funding to pay teachers based on enrollment, fewer students means fewer dollars—and state law prohibits moving money from our other funds into the Education Fund (the source we use to pay teachers.)

These challenges have increased since February 2025 due to reduction and uncertainty in state and federal funding. In 2025, Indiana passed new laws that will greatly reduce funding for all public schools. Senate Enrolled Act 1 is projected to reduce MCCSC’s funding significantly — by more than $30 million from 2026-2031.

Have there been cuts to central administration?

Yes. Central administration positions were included when MCCSC began reducing positions through natural attrition (not filling employment vacancies) in February 2025 after announcing the Two-Year Strategy to Achieve Financial Balance. In addition, when MCCSC eliminated positions in May 2025, reductions included central office administration, support staff, information technology, transportation, and food services, although the majority of eliminated positions were custodial and health aide roles initiated during the COVID-19 pandemic.

MCCSC's Two-Year Strategy to Achieve Financial Balance examines opportunities for cost savings at both the school level and corporation-wide, and central administration is always part of that review.

Are other school corporations in Indiana facing financial challenges and declining enrollment?

Yes, most Indiana public school corporations are experiencing declining enrollment. Most Indiana public schools will also receive fewer dollars than expected because of Senate Enrolled Act 1 (SEA 1). Learn more at the Indiana Coalition for Public Education.

How is state funding impacting MCCSC’s finances?

Recent changes in state law are creating significant financial challenges for MCCSC and public schools across Indiana.

Senate Enrolled Act 1, passed by the Indiana General Assembly in 2025, changes how property taxes are calculated and collected. While the law is designed to provide a property tax credit to homeowners, it greatly reduces the amount of local property tax revenue available to public schools and other local government entities.

For MCCSC, SEA 1 is projected to reduce funding by more than $30 million from 2026-2031, as calculated by Policy Analytics. This includes projected losses of approximately $3-4 million annually in referendum revenue and $1.8 million per year by 2031 in charter school revenue sharing.