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Muncie Community Schools Restructures Bonds To Pay 2017 Bills

MCS CFO Bob Coddington talks about restructuring the district's debt. (Tony Sandleben/IPR)

MCS CFO Bob Coddington talks about restructuring the district’s debt. (Tony Sandleben/IPR)

After the school board voted on a fundraising plan Tuesday night, Muncie Community Schools will be able to cover $3.7 million in bills through the end of 2017.

However, superintendent Steven Baule says the district is not out of the woods yet.

“This is not the long term solution. It’s a mid-term solution,” Baule says.

Muncie Schools CFO Bob Coddington says the school district is rearranging its debt, by way of restructuring bonds, in order to pay what it owes in December.

 

READ MORE: As Legislature Finalizes Muncie Finance Bill, Here’s How We Got Here

Long term, the plan will still leave an $11 million deficit for the foreseeable future, with a debt spike expected in 2023.

Coddington says the line-item budget the school board approved earlier this year will keep that debt spike in check and will slowly cut away at the deficit.

With a government takeover still a possibility, Rep. Sue Errington (D-Muncie) says she is optimistic about Muncie remaining independent. She says there is one thing the district could do in the time left before the state board’s decision.

“Definitely the teacher contract. I think that is something that’s something that is pending out there,” Errington says.

Administrator Assistance, the emergency manager team, has authority to negotiate all contracts through the end of the year.

Tuesday’s meeting was scheduled as a public hearing, and after Coddington’s presentation, the public was invited to the podium to make remarks. But no one did.

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