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MCCSC Facing Budget Woes For Next School Year

By Joe Hren

Posted March 28, 2012

MCCSC may have to do more with less for the upcoming school year. As Director of Business Operations Tim Thrasher says, the Department of Local Government and Finance, who oversees governmental budgets in the state of Indiana, has cut 8 percent of the appropriations MCCSC requested for 2012 in the capital improvements and bus replacement funds.

"For reasons we don't fully understand yet, they refuse to give us the allocation for future projects and offset the neutrality provision against it and actually cut into the appropriations that we requested in the primarily in the capital projects fund by about $803,000," he says.

Five years ago the school corporation sold bonds to pay retirement and severance expenses expected over the next 20 to 30 years. Thrasher says the provision statement in a statute to reduce the tax levy in other areas to offset the debt has assisted in future maintenance and bus transportation needs.

"We've advertised an allocation for future projects in both the capital projects fund and the bus replacement fund," Thrasher says. "And then asked the department of local department government finance to lower those allocations so that it offset the amount of the levy and the retirement savings bond so that's how we've accomplished the neutrality requirement ever since 2006."

The corporation replaces buses every 12 years. In 2014, Thrasher notes more than 10 buses are scheduled to be replaced, costing more than $1 million.

Superintendent Judy DeMuth stressed other school corporations have also been affected. She says they will do their best to recoup funds taken away from the budget. In the meantime, maintenance projects will likely have to be placed on hold until 2013 if the funds can't be reallocated.

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