00;00;00;04 - 00;00;18;01
Stephanie Wiechmann
As of January 1st, Muncie Community Schools will be designated a distressed political subdivision. All five members of the Distressed Unit Appeals Board voted to keep MCS under state control. But as many said at a meeting in Indianapolis, it wasn't because MCS officials didn't make progress on controlling the district's multi-million dollar debt.

00;00;18;03 - 00;00;25;03
Paul Joyce
Progress has been made. Great efforts have been made by the school corporation. But we're not there yet.

00;00;25;06 - 00;00;33;04
Eddie Melton
An abbreviated time frame. I believe that they have just a six months. I wish it could have been a little bit longer. They could have addressed the issue.

00;00;33;07 - 00;00;41;21
Micah Vincent
There still is that very large question on the 2014 general obligation bond issue. There have been steps made on the rest of the puzzle.

00;00;41;24 - 00;01;04;08
Stephanie Wiechmann
That was board members Paul Joyce and Democratic State Senator Eddie Melton and board Chair Micah Vincent. Over the last several months, under partial state control, MCS emergency management team Administrator Assistance has restructured the district's bonds, created a balanced budget for 2018, negotiated a new teachers contract and negotiated the sale of Northside Middle School and four other parcels, including three former elementary school properties.

00;01;04;08 - 00;01;24;00
Stephanie Wiechmann
But according to reports filed with DUAB, the district still has $ 43 million in long term debt, including $ 9 million in 2014 building maintenance bonds that were used instead for the General Fund. DUAB’s Vincent says even if the district had been given back local control, the state legislature would have still seen financial requests from Muncie in the future.

00;01;24;00 - 00;01;32;04
Micah Vincent
And as I look at that and think about that, that's another item that makes me think that the role of the state, should continue to be involved.

00;01;32;06 - 00;01;55;09
Stephanie Wiechmann
The board also designated Administrator Assistance to be the temporary emergency manager of MCS beginning January 1st, after its current contract expires in 2017. The move puts Administrator Assistance in charge of MCS for several months until DUAB can complete a search process for a permanent manager. Administrator Assistance is allowed to compete for that permanent contract. In Muncie, Stephanie Wiechmann, IPR news.