The Monroe County Community School Corporation will have to make staffing cuts in response to an enrolled act reducing the school’s potential revenue by over $17 million in the next three years, the district's Superintendent Markay Winston said at an MCCSC trustees meeting Tuesday.
According to Senate Enrolled Act 1’s fiscal analysis, MCCSC will see a loss of nearly $3.5 million in revenue next year compared to current law.
“The projected reduction in state funding over the next three years will impact our ability to maintain current support services and staffing levels throughout the organization,” Winston said at the meeting.
Winston said the district has already put a pause on filling positions left empty by retirements or resignations, though decisions will be made on a case-by-case basis.
It's also exploring other ways to reduce expenses in the coming months. The district is discussing how to approach the changes with the Monroe County Education Association and American Federation of State, County and Municipal Employees unions and building administrators, she said.
“I cannot eliminate the impact, but we will make our best effort to minimize the impact,” Winston said. “To be sure, the loss of this amount of revenue will require us to rethink how we do school.”
SEA 1, which deals with property taxes, was controversial on both sides of the aisle. It underwent several substantial amendments during the Indiana legislative session.
The original bill would have put a cap on property tax bill increases and increased the homestead standard reduction for property owners. According to a fiscal analysis, Monroe County would’ve lost over $25 million in possible tax revenue in the first year alone, with an over $10 million loss to MCCSC.
The final enrolled act isn’t as dramatic of a change. Homeowners will be able to receive a property tax discount of 10%, up to $300. According to the Indianapolis Star, it allows cities and towns to establish local income tax rates but limits how much they can raise their property taxes. Public schools will also have to share revenue from tax levies with eligible charter schools.
Monroe County will receive nearly $10 million less in revenue in the first year compared to current law, according to the state’s fiscal analysis. The county will collect over $37 million less over three years.
Monroe County Councilors previously sounded the alarm about SEA 1’s effects on the county, approving a resolution opposing the then-bill in February. In March, they voted to pause consideration of new county jobs, reclassifications and description changes that increase county costs anticipating changes due to SEA 1 and other legislation.
“Senators, house members, you could cut it in half, and then cut that into quarters, and you’re still going to be killing us,” Councilor Trent Deckard said Jan. 28 about the original bill. “That’s how bad it is.”
MCCSC schools had an e-learning day April 14 to allow teachers to participate in the Indiana State Teacher’s Association Day of Action rally at the Statehouse against the bill. Gov. Mike Braun signed the final bill into law April 15. School corporations statewide will receive over $190 million less revenue next year than they would under current law, the bill’s fiscal analysis states. That’s over $744 million across three years.
