Monroe County, Indiana – The Monroe County Community School Corporation (MCCSC) Board of School Trustees convened on Tuesday, October 28, to adopt the district’s 2026 budget and discuss several major developments affecting local schools. Among the most significant updates was a financial report from consultant Barry Gardner of Policy Analytics, who warned that new state legislation could cost MCCSC millions of dollars in annual revenue in the coming years.
The Board officially approved the 2026 operating budget, which reflects a reduction of roughly $6.2 million compared to the 2025 budget. While the decrease drew concern, school officials emphasized that the district is still working to protect student programs and staff positions amid financial uncertainty.
Millions in losses projected under new state law
Gardner’s presentation focused on the effects of Senate Enrolled Act (SEA) 1, a recently passed law that changes how local tax revenue is distributed. According to his analysis, the law will have a substantial financial impact on school corporations across Indiana, including MCCSC.
“Overall, the mechanics of Senate Enrolled Act 1 are going to increase tax rates regardless of what the school district does,” Gardner explained. “And this is not just Monroe County Schools. This is all school districts across the state. These are county units. These are city units.”
Gardner estimated that MCCSC could lose between $3 million and $4 million per year in referendum revenue, in addition to another $1.8 million annually by 2031 due to new requirements for charter school revenue sharing. Over a five-year period, these losses could total tens of millions of dollars.
The new law was designed to adjust local government funding formulas, but the changes could have serious ripple effects for public education budgets. Gardner’s analysis showed that even districts with voter-approved referenda, like MCCSC, will face reductions that may force them to make difficult budget decisions.
Progress and challenges in early learning
Despite the concerning fiscal forecast, the meeting also highlighted several areas of success. Dr. Tim Dowling, MCCSC’s director of early learning and enrollment, shared encouraging updates on the district’s early childhood programs, which have grown significantly since voters approved the 2023 education referendum.
“I do want to point out how amazing this is, especially in light of what’s happening across the state. Statewide, 25,000 families were on a waitlist for CCDF funding, unable to access early learning programs,” Dowling said. “We are protected and blessed to have this referendum. We are having very different outcomes for our children because of this referendum and for that, I’m eternally grateful.”
Thanks to local referendum support, the number of MCCSC families with access to 3-Year-Old Preschool and 4-Year-Old Pre-K programs has more than doubled. The majority of participating families are able to attend these programs at little or no cost, a major step toward equitable access to early learning in Monroe County.
Redistricting and demographic analysis underway
Dr. Dowling also provided an update on the MCCSC Redistricting Study, which aims to evaluate and balance school boundaries to reflect community growth and demographic changes. The study now includes U.S. Census (American Community Survey) and Monroe County parcel data to help assess socioeconomic equity among schools.
Dowling is working closely with Monroe County GIS Coordinator and Commission member Dr. John Baeten, who explained that detailed Census block data—such as household income—is helping the commission assess population distribution and community needs. The redistricting process will continue into next year, with a final report expected in spring 2026.
Staffing and transparency addressed
Assistant Superintendent for Human Resources and Operations Dr. Jeffry Henderson spoke about the district’s ongoing efforts to manage staffing efficiently while responding to fluctuating enrollment and revenue.
“We continue to evaluate staffing levels across every employee group as we seek balance within our enrollment numbers and our available revenue,” Henderson said.
He also clarified a common misunderstanding regarding the Indiana Gateway website, which displays statewide school financial data. Henderson explained that Gateway should not be used to count MCCSC job positions because the platform can double-count vacancies and rehires in the same year.
Support from referenda continues to make a difference
Henderson expressed gratitude to the Monroe County community for its continued support through the 2022 referendum, which has been essential in funding staff wages and benefits.
“As a reminder and a thank you to our community … In our Referenda Impact Report that we published in May 2025, we reported $34.5 million of the 2022 referendum had been invested to date in teachers and staff through hourly and base salary increases,” said Henderson.
That funding has helped MCCSC remain competitive in teacher pay, even as other districts across the state face staffing shortages and salary constraints. However, the potential revenue reductions under SEA 1 have raised concerns about how long those gains can be sustained.
Looking ahead amid uncertainty
While the district is facing new fiscal challenges, school leaders say they are focused on maintaining stability and continuing to deliver quality education. Superintendent and Board members emphasized that they will advocate for public school funding and work closely with state and local officials to understand the long-term implications of the new law.
The Board also celebrated progress in several areas, including academic achievement, preschool expansion, and community engagement. Leaders said they hope these ongoing successes will help strengthen public trust and support as the district prepares for future financial pressures.
MCCSC’s next steps will include reviewing cost-saving measures, monitoring legislative developments, and planning for a phased approach to address budget adjustments starting in 2026.
For the community, Gardner’s presentation served as a sobering reminder that education funding remains closely tied to state-level decisions—and that even strong, referendum-supported districts are not immune to legislative shifts.
Information about future Board of School Trustees meetings and agendas can be found on the MCCSC website at www.mccsc.edu, under the Board of School Trustees tab.
