Muncie Schools CFO To New Board: “It’s A Solvent Company”

A new school board has met in Muncie with three weeks before the start of classes.  It’s a board appointed by Ball State University in the state’s first-ever legislative-mandated agreement of its kind.  And despite having to learn quickly, the board heard from the district’s emergency managers that logistically and financially, everything is in good shape.  That is, as IPR’s Stephanie Wiechmann reports, if the state comes through with a promised loan by September.

Newly nominated Muncie Community Schools board president James Williams says the new board is starting from scratch.  Even when it comes to their bylaws.

“My review of the bylaws – I found them to be cumbersome, outdated in many respects.”

Vice President Keith O’Neal and President James Williams consider MCS finances at the board meeting. (Photo: Stephanie Wiechmann)

One of the board’s top priorities is to hire a new superintendent.  As they write up a job description and consider hiring a search firm, the interim administration put in place Monday night has familiar names – it’s the existing emergency management team, Administrator Assistance.

And that team’s CFO and now interim district treasurer, Bob Coddington, had good news for the board.

“You’re taking over a much better shape than some people got.  Yes you are – it’s a solvent company.  If you balance the budget in ’17, you balance in ’18, you right-size for ’19, you’re living within your means.”

Coddington says his projected budget for the rest of 2018 leaves the district with more than $5 million in the bank come December.  His numbers predict another loss of several hundred students from classrooms this fall.  The district lost more than 400 last year.

And, Coddington’s numbers assume the state has paid MCS a governor-approved loan of $12 million, so it can use that to operate at full capacity while slowly paying back misused capital fund bonds.  That loan still hasn’t arrived, and without it –

“We run out of appropriations at the end of September, early October, without that $12 million.”

Emergency manager Steve Edwards says the State Finance Committee must still approve the terms of the loan, mainly how many years MCS will have to pay back the money.

Also Monday night, the board asked Edwards to send messages to all current teachers saying they’ll have a place in the district next month, and to detail salary and benefits.  Last month, the district was able to eliminate about 30 positions through retirements and resignations, so only three teachers lost their jobs due to a “reduction in force.”  This month, MCS hired 12 teachers and administrators and are actively interviewing for 12 more open positions.

The new school board intends to meet for public meetings twice a month going forward, usually on Tuesdays, at locations across the district.

In addition to James Williams as president, Keith O’Neal was appointed as vice president and Dave Heeter was appointed secretary.

Classes in Muncie begin on August 6.