Muncie Community Schools Financial Overview
Muncie Community Schools faced a long-term general fund structural deficit, a decline in enrollment, property tax cap impacts, and cash flow crisis. The deficit reduction plan from 2017 aimed to address the financial challenges, including unfunded liabilities, declining revenue, and past due bills.
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Muncie Community Schools Deficit Reduction Plan 4/2017
Finances: Calendar Year General Fund Revenue v. Expenses $58,000,000.00 $56,000,000.00 $54,000,000.00 $52,000,000.00 $50,000,000.00 $48,000,000.00 $46,000,000.00 $44,000,000.00 $42,000,000.00 $40,000,000.00 2008 2009 2010 2011 2012 2013 2014 2015 2016
General Fund Surplus/Deficit by Calendar Year $4,000,000.00 $3,464,728.53 $2,000,000.00 $0.00 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 -$679,056.00 -$1,451,982.53 -$2,000,000.00 -$1,660,552.42 -$1,759,887.60 -$1,972,563.90 -$4,000,000.00 -$4,136,425.79 -$4,328,262.23 -$4,653,826.80 -$6,000,000.00 -$6,502,166.01 -$8,000,000.00
Long-term General Fund Structural Deficit Calendar Year Revenue $55,711,885.51 $49,822,771.73 $56,526,821.57 $53,221,161.64 $50,729,780.46 $49,763,185.41 $50,284,264.41 $47,408,430.20 $43,493,646.96 $42,988,994.00 Expenses $57,684,449.41 $56,324,937.74 $53,062,093.04 $54,881,714.06 $55,058,042.69 $53,899,611.20 $51,736,246.94 $49,168,317.80 $48,147,473.76 $43,668,050.00 Deficit -$1,972,563.90 -$6,502,166.01 $3,464,728.53 -$1,660,552.42 -$4,328,262.23 -$4,136,425.79 -$1,451,982.53 -$1,759,887.60 -$4,653,826.80 -$679,056.00 -$23,679,994.75 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Total
Current Situation Cashflow is at crisis point According to the State Board of Accounts Audit from 2015, $10.2 million in unfunded liabilities from 2013, 2014 & 2015 remained Enrollment continues to decline at faster than predicted rates (Enrollment already lower than Performance Services 2014 study anticipated for 2021) Property Tax Caps have significant impact on MCS; second highest percentage loss in the state among school corporations No significant additional bonding authority No ability to fund capital projects with current funding pattern
Key Factors Indicator 2014-2015 71% Projected 2017-2018 80% (94% pending referendum) 14.77:1 Space Utilization Rate Student:Teacher Ratio 13:1 Number of Administrators 49 28-29* Past due bills from General Fund $9,755,837** $3,740,760*** *Depends upon grant funding: currently on administrator is entirely grant funded ** According to 4/2016 SBoA Audit *** Projected
Muncie Community Schools Cash on Hand-Banks 12/31/2016 AVAILABLE CASH Cash-Checking @ First Merchants Bank Cash-Payroll @ Old National Bank Total Cash Available RESTRICTED CASH JP Morgan Chase-Union Checking JP Morgan Chase-Union HRA Star Financial Bank Non-Union HRA Star Financial Bank Non-Union Health Insurance Acct. 1,686.45 Star Financial Bank Non-Union "105" Acct. JP Morgan Chase-Union "105" JP Morgan Chase-Union Hi Yield Savings Total Cash Available TOTAL CASH IN BANKS Total Cash in Banks (4,237,543.65) 32,016.69 (4,205,526.96) 717,418.56 771,241.72 859.10 34,065.42 41,297.21 350,761.95 1,917,330.41 (2,288,196.55)
ADDITIONAL FUNDS WITH NEGATIVE BALANCES General Fund Debt Service Debt Service: Interest Payment 2016 Tax Warrants Cafeteria Fund Textbook Fund Special Education (1300 Series) Special Education-Preschool Special Education (5200 Series) Vo-Ed Co-op Opportunity/Priority School Excellence in Performance Title I Title II Adult Basic Education (10,137,825.11) (3,516,052.00) (127,236.10) (187,298.00) (873,238.00) (2,394,608.00) (5,566.00) (54,064.00) (394,512.00) (595,851.00) (39,599.00) (65,117.81) (15,428.11) (177,015.00) (18,583,410.13)
AVAILABLE CASH 12/31/2016 Total Cash Available (15,202,631.34) Total Funds with Negative Balances (18,583,410.13) Total Cash Deficit-Restricted Cash & Negative Balances (33,786,041.47) Total Cash Required to Fund Restricted Cash & Cover Negatives 33,786,041.47
Reductions Already Made $7,981,322.42 in annualized reductions $1,380,000.00 in one time revenue since 7/2015 $419,059.32 Admin $3,205,425.90 Non-certified staff $357,700.00 Facilities $1,882,000 Teaching staff $97,637.20 Supplies & Equipment
Reductions In Process $1,333,000 New Transportation Contract $1,100,000 Move to solar power for buildings $188,000 Modify the way be pay routine bills $20,000 Further streamline printing costs $25,000
Reductions made on 4/11/2017 Reduction administrative office support staff (4 positions) $151,423.00 Reductions made on 4/13/2017 Closure of three elementary schools $2,919,725.00
Additional Reimbursements/ Revenue $100,000 Medicaid Reimbursement $40,000 BMH/IU Health Support for Athletic Trainer $60,000
Budget Status Total to Date $12,485,570 In Question $962,250 Additional Needed $4,552,280 MCS is planning to appeal the Fact Finders ruling, if successful, that would save more than the additional funds needed
Next Steps Review our existing vendor contracts to further reduce costs in food service, facilities management and nursing services Review additional options for reducing health care insurance costs with teachers union (MTA) Review remaining instructional and support staffing to find additional ways to consolidate or eliminate positions Continue to find ways to automate existing clerical and administrative tasks in order to reduce administrative burdens and reduce clerical staffing Look for ways to collaborate with partners such as BSU to share services, obtain in kind services, etc. Look for ways to raise additional revenue through selling off real and other properties, advertising, naming rights, etc.
