Multiple factors have contributed to MCCSC’s declining enrollment since the 2020-21 school year. School districts across the country and throughout Indiana experienced enrollment declines at the beginning of the COVID-19 pandemic in the fall of 2020.  Monroe County’s overall declining population numbers, decreasing birth rates, fewer families with school-age children, and competition from private, charter, and online schools were all contributing factors impacting student enrollment within MCCSC and beyond. In 2023, Indiana passed legislation expanding the state’s voucher (private /charter school) program, further depleting funding from public schools.  

MCCSC’s enrollment loss of more than 800 students from October 1, 2019 through October 1, 2024, resulted in a total loss (for 2019-2023) of approximately $17,228,185 in state tuition aid revenue (the primary funding source that pays teacher wages and benefits). MCCSC is projecting an additional loss of approximately $5,186,668 for the 2024-25 school year.   

MCCSC recognized declining enrollment beginning in the 2020-21 school year due to onset of the COVID-19 pandemic. Schools across the country were shuttered for several months in response to the once-in-a-lifetime public health crisis.  When schools began to reopen in the fall of 2020, approximately 50% of our families opted for online schooling to shelter their families from the health crisis. Enrollment was expected to rebound in 2021-22, but the decline continued through 2022, 2023, and 2024. 

To date, teacher staffing levels have not decreased.  

At the onset of the COVID-19 pandemic, corporations nationwide, including MCCSC, saw a decline in student enrollment. Experts forecasted that enrollment would return to pre-pandemic levels over time.  MCCSC maintained existing staffing levels to prepare for expected enrollment returns and to supplement instructional support for students experiencing lost instruction due to the pandemic. Many districts nationwide are seeing the same phenomenon: declining enrollment with either steady staffing or increased staffing.  

Collectively, MCCSC employees experienced a 31.7% increase* in wages and benefits over the last 3 years. The increased wages resulted in fewer vacancies and have been instrumental in our recruitment efforts. The 31.7% increase is due to many factors.  Teacher wages and benefits increased by 24% from the 2021-2022 school year through the 2024-2025 school year (projected).  Similarly, hourly (support) staff wages and benefits increased by 47.5% (projected) from calendar year 2022 through 2025. 

• Public support for MCCSC’s 2022 Referendum resulted in a $4,500 base rate increase for teachers and a $2.25 raise for support staff (hourly) employees. The $4,500 per teacher was made retroactive to 7/1/22, while Referendum 2022 funding was not received until calendar year 2023.   

• Hourly employees were given a 1.5% increase in wages on top of the $2.25 increase from the Referendum, effective 1/1/23 as a part of their bargaining agreement.  

• Rising inflation and cost-of-living increases, combined with collective bargained salary increases, have all played a major role.  

•  In 2022, Indiana passed legislation requiring that starting teacher salaries were $40,000 or above.    

*The national average one-year change in public school teacher salaries from 2021-22 to 2022-23 was 4.2 percent. (NEA Rankings & Estimates, September 2024) 

In July 2024, then Interim Superintendent, Dr. Winston conducted a preliminary review of the fiscal health of the corporation.  As a result of her review and consultations with our Chief Financial Officer, Dr. Winston recommended that MCCSC engage Policy Analytics to conduct a comprehensive fiscal review and forecast of corporation finances to aid in future planning.  In addition, MCCSC enlisted the fiscal expertise of Baker Tilly, established corporation financial consultants, to further examine corporation fiscal strengths, threats, and opportunities.  A thorough review of corporation historical expenditures was also initiated to identify spending trends.  

When Dr. Winston was appointed Superintendent in January 2025, she furthered her analysis of additional financial audits of corporation expenditures, an additional financial forecast, and an analysis of proposed legislation. 

A cost analysis of declining enrollment numbers and therefore, declining revenue, contrasted with stable staffing levels over the past three years, indicates that structural changes to the organization will be necessary over the next two years to maintain the fiscal health of MCCSC.   

As such, Winston presented MCCSC’s two-year strategy to achieve financial balance on February 25, 2025, as the conclusion of her comprehensive assessment of MCCSC’s fiscal and operational health that she began in July 2024 upon her appointment as Interim.    

Yes.  MCCSC’s 2022 Referendum is currently funding the wage and benefit increases it was designed to fund when it originally passed in November 2022. These included a base salary increase of $4,500 for teachers and an hourly rate increase of $2.25 for support staff.   

MCCSC’s 2023 Referendum funds wages for Early Childhood Education salaries and program expenses.  These funds are also used for a variety of other supports (school supplies, contracted services, student support, AP test fees, dual credit course fees, etc.), which thereby frees up other non-referendum funds to cover rising wages and benefits. 

While MCCSC’s two referenda funds are being fully utilized as they were intended, they are not large enough to cover the cost gap between rising wage and benefit expenses and declining revenue.   The long-term fiscal health of the corporation will require strategic, structural changes to eliminate the gap between expenses and revenue.    

Yes, MCCSC received approximately $25.1 million in ESSER funds from 2020 through June 2024. ESSER funds were used to support HVAC boiler and chiller purchases along with maintenance and repair of HVAC equipment.  ESSER funds were also used for technology needs including the purchase of student 1:1 devices, custodial supports, and air quality improvements.  Additional ESSER funds were spent for staff stipends for COVID – related work, student services, and temporary personnel. 

MCCSC requires structural changes to establish financial health, and to achieve that, a number of strategies will be considered.  Superintendent Winston, under the direction of the Board of School Trustees, will be conducting a comprehensive analysis and review to identify the most appropriate structural strategies to position MCCSC for long-term financial stability and sustainability, while minimizing disruption to student learning. This includes evaluating projected revenues and assessing all operational costs (e.g., staffing, programming, etc.). The Board will aim to balance expenses and revenue in a sustainable model that supports long-term financial health. 

Yes. Our priority will be to leverage natural attrition to respectfully reduce staffing. Specifically, as employees leave MCCSC due to retirement or resignation, the corporation will assess the viability of reassigning staff into vacated positions. We are committing to a thoughtful process, taking the time needed to study alternatives for disciplined cost containment.  

 It is too early to say for sure. However, we want to reassure our community that a thorough process will take place to assess each program carefully and decisions will be made in a student-centered approach to either maintain, modify, scale back, or eliminate programs based on the availability of funding sources. 

The voters approved $17,377,238 for the 2022 Referendum Fund. However, in 2023 the State of Indiana enacted a tax cap, which limited the property tax revenues that a Referendum Fund may receive. While this tax cap did not impact us in 2023 or 2024, it will significantly impact us in 2025.  This means we will receive approximately $1.3 million less than expected in 2025, so instead of our projected growth for the 2022 Referendum Fund reaching approximately $20.2 million it will be approximately $18.9 million. The loss of these funds hinders our ability to maintain current staffing levels.  We will continue to receive less funds each year due to these tax caps.    

Multiple 2025 state legislative session proposals may also result in decreased funding for public schools in future years.   MCCSC is continuing to closely monitor the fiscal impacts of all proposed legislation.  
  

The Board of School Trustees and MCCSC leadership will continue to monitor important changes in proposed legislation with the assistance of legal counsel, professional (IASBO, ISBA) and community organizations (Indiana Coalition for Public Education).  Additionally, MCCSC is in communication with local legislators and government officials regarding the anticipated detrimental impact that would be experienced by our schools if currently proposed legislation is approved. (e.g., SB1, SB518, etc.) 

Every Board meeting from now through the end of the legislative session will include legislative updates and the anticipated impact on our corporation.  

Attend or livestream Board of School Trustees meetings, where monthly legislative updates will be shared. 

We do not yet know how changes at the federal level might impact our schools, and we are closely monitoring all directives and communications.  To be clear, there is uncertainty at both the state and federal level that could adversely impact our 2-year plan and strategy.   

More specifically, there are several federal rebates/reimbursement programs that have been allocated to be disbursed to MCCSC by Federal departments or agencies, but the distribution of these funds has been delayed. These agencies include the EPA, for electric (EV) buses and various solar projects, and the IRS, for a tax rebate.  

The funding that pays for capital projects, including facility renovation and construction, per Indiana Code, may not be used to pay teacher wages and benefits.  

MCCSC has four main funding source “buckets,” within its overall budget, and each can only be used to pay for specific things. Per Indiana Code, capital projects, including facility renovation and construction, must be paid for from either the Debt Service Fund or the Operations Fund. The Debt Service Fund may not be used to pay teacher wages and benefits.  

Per Indiana Code, teachers are to be paid from the Education Fund, which is state-funded and based solely on student enrollment. It is the only fund that is permitted to be used to pay teacher wages and benefits. The majority of support staff are paid from the Operations Fund.   

Contact your elected officials. Write letters, send emails, or make phone calls to state government representatives to express why it is important to increase funding to public schools. Stay informed about the impact of proposed legislation on schools through education advocacy groups like the Indiana Coalition for Public Education (ICPE).  

MCCSC and the Board of School Trustees will prioritize maintaining a high level of educational quality in all decision-making.  Some of the key considerations that will influence decision-making will be based on whether a recommendation is educationally sound, good for kids, fiscally responsible, and sustainable.  We will continue to comply with all state and federal mandates.     

Historically, we have been successful, and quite fortunate, in maintaining favorable class size ratios throughout the corporation.  We will conscientiously manage our average class-size ratios, while also recognizing that changes may need to occur in our effort to balance budgets to ensure our future fiscal health.   

Schools have a number of funding sources, and each one has specific requirements.  The Operations Fund is the primary funding source that schools can use to renovate or build facilities (e.g., school buildings, office buildings, athletic facilities, etc.).  Operations Funds can never be used to pay the cost of teacher wages or benefits.  As a result, the sale of the HT building, while allowable, would not be able to offset the losses in the Education Fund (the primary fund used to pay teacher wages and benefits).  While any revenue gained from a property sale would result in a one-time, short-term adjustment, it could only be reinvested back into the Operations Fund and would not provide sustainable funds to balance revenue and expense discrepancies.