MCS Fiscal SituationMarch 6, 2017

Scope of MCS September 2016• Serve children from age 3 to 22 and adults working towards a HS

diploma• 5650 Traditional Students• 597.5 Permanent Staff (24% reduction)

Administrators 33 (9% reduction) Faculty 408 (9% reduction) Non-certified Staff 149 ( 43% reduction)

• Fifteen Locations Nine Elementary Schools (PK-5) Two Middle Schools (6-8) Muncie Central High School (9-12) Muncie Area Career Center (9+) Youth Opportunity Center (6-12) Camp Adventure

Student Demographics SY2017• Breakdown by Ethnicity

20% Black/Non-Hispanic 12.8% Hispanic 62.4% White/Non-Hispanic 3.7% Multiracial 1.1% Other

• 25% of Students with an IEP (Unduplicated Count 12/2015 numbers) 230 Severe Disabilities 581 Mild Disabilities 800 Speech/Language Disabilities

• 1% of Children who are English Language Learners• 74.6% Percent of Students on Free or Reduced Lunch

Enrollment Based upon Fall Reporting

2010 2011 2012 2013 2014 2015 2016 2017

4000

4500

5000

5500

6000

6500

7000

7500 72127019

69406802

6602

61155893

56505569

Yellow bar shows projected enrollment from Mike Reuter’s financial projections 3/2016

Indiana Department of Education and State Board of Accounts have

requested that MCS develop and implement a deficit reduction plan in

April 2016MCS will submit it as soon as we complete negotiations with

MTA

General Fund Expenses by Type

Salaries50%

Benefits26%

Purchased Services

1%

Water/Trash1%

Insurance/Travel

2%

Supplies2%

Special Ed11%

Vocational Ed1%

Alternative Schools

1%Custodial/Maintenance

6%

Finances: Calendar Year; General Fund Revenue v. Expenses

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017$38,000,000.00

$40,000,000.00

$42,000,000.00

$44,000,000.00

$46,000,000.00

$48,000,000.00

$50,000,000.00

$52,000,000.00

$54,000,000.00

$56,000,000.00

$58,000,000.00$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

$43,895,518.00

EOY Operating Balances & Cash Reserves

2008 2009 2010 2011 2012 2013 2014 2015 2016

-15,000,000.00

-10,000,000.00

-5,000,000.00

0.00

5,000,000.00

10,000,000.00

15,000,000.00

20,000,000.00

25,000,000.00

30,000,000.00

18,092,520.0019,997,961.00

25,117,562.00

14,371,961.00

10,212,639.00

4,043,611.004,802,976.001,090,624.00

-10,264,206.00

Total Reserves GF Cash (Included in Total)

2015 Tax Cap LossesCircuit Breaker As % of Total Levy

Muncie Yorktown Wes-Del Delaware Daleville Liberty-Perry Cowan0

5

10

15

20

25

30

35

40

4543.66

13.59

4.282.45 1.43 0.85 0.1

Rainy Day Fund

2010 2011 2012 2013 2014 2015 20160.00

500,000.00

1,000,000.00

1,500,000.00

2,000,000.00

2,500,000.00

3,000,000.00

3,500,000.00

4,000,000.00

4,500,000.004,100,000.00 4,100,000.00 4,025,160.36

3,274,457.91

0.00 0.00 0.00

Facilities Maintenance• With brief expenditures are Southside High School in 2009, no major facilities projects have been undertaken in a decade• One of the keys of the Strategic Planning Process was to develop a long term facilities plan for the corporation and a preventative maintenance program• MCS has identified more than $50 million in work that needs to be completed in order to bring buildings up to appropriate standards• Two buildings had to be temporarily closed this year due to HVAC issues

MCS Historic Staffing RatiosSCHOOL

YEAR FTE ENROLLMENT2007/2008 546.43 74752008/2009 527.43 73342009/2010 526.8 72122010/2011 514 69582011/2012 515.5 68592012/2013 508 67352013/2014 493.5 65492014/2015 467 60732015/2016 445 58652016/2017 408 5620

SCHOOL YEAR

TEACHER/ STUDENT RATIO

2007/2008 13.682008/2009 13.902009/2010 13.692010/2011 13.542011/2012 13.312012/2013 13.262013/2014 13.272014/2015 13.002015/2016 13.182016/2017 13.77

Impact of Special Education on Student Teacher RatioMCS serves as the administrator for the Blackford-Delaware County Special Education Cooperative

MCS serves 1434 students with a primary disability and 243 with a secondary speech need plus 31 county students

More than 25% of our students have been identified with special needs. Yorktown for instance has 10% (TSP 2015) and statewide average is 14.9%

308 of those (K-12) students are in 29 separate classes. That ratio of 10.6 drives the rest of our ratio down. In considering student/teacher ratio, special education has a huge impact

MCS Current Student Teacher Ratio

Staff Students Student/Teacher Ratio

MCS Total 408 5620 13.77

MCS Self-Contained Special Education

29 308 10.62

MCS Youth Opportunity Center

15 155 10.33

MCS Non- Self-Contained Spec Ed. & Regular Education

364 5157 14.17

Daleville (SY16) 924 13.6

Wes-Del (SY16) 817 12.3

Cowan (SY16) 791 13.6

Yorktown (SY16) 2534 17.6

Cost Reductions Annual SavingsEnergy manager (11/1/2015) 87,059.32Two accompanists (7/1/2016) 50,852.92District administrator (R. Thompson's position) 100,000.00Healthcare discounts (11/1/2015) 2,000,000.00Two secretarial reductions (Dist. Office) 100,000.00MCHS administrator (7/1/2015) 90,000.00Move from ENA to G-mail (8/1/2015) 83,000.00Privatize food service (3/2016) 496,000.00Privatize custodial services (3/2016) 450,000.00Modification of Tax Anticipation Loan process (1/2016)Attorney at board meeting (7/2015) 4,500.00Change administrative salary structure (3/2015) 62,000.00Rent farmland near Wilson MS (3/2016) 2,500.00Clean up water/sewer bills 10,000.00Teacher reductions (32) (add 15 Inst. Assts.) 1,260,000.00Replace YOC certified instructor with non-certified (8/1/2016) 20,000.00Replace YOC suspension teacher with a Student Assistance Coordinator 5,000.00Reduce a media specialist (8/1/2016) 60,000.003.5 secretarial reductions (2.5 Dist. Office; 1 MACC) (7/1/2016) 175,000.00Reduce parent volunteer coordinators (7/1/2016) 33,000.00Security reductions (7/1/2016) 80,000.00Leave NMS pool closed 92,000.00Outsource nurses (7/1/2016) 300,000.00De Facto reduction of counselors (sharing between NV/MES & WV/Storer) as no qualified candidates are available 100,000.00Close Anthony Administrative Building 178,000.00Break Energy Management Contract 79,200.00Reduce Copiers at MCHS $1463.72/academic month 14,637.20Eliminate School Dude 6,000.00Reduce a MCHS secretary 55,000.00Change non-bargained insurance plan 475,994.00

6,469,743.44

Reductions In Process Annual SavingsReduce a media aide (MCHS) 35,000.00Streamline printing/copying 25,000.00Retiree health contributions (non-union) 1,014,578.98Modify the way we pay routine bills 20,000.00Stop retiree cash payments under Article XII of MTA Contract 160,000.00Properly Bid Transportation Contract 1,300,000.00+Solar Power Contract for MCS Buildings 188,000.00Total In Process 2,742,578.98

Sub-Total Reductions Already Made 6,469,743.44

Total Reductions in Process and Made 9,212,322.42

Reductions being asked for via Fact Finding 6,049,464.00

Grants & Partnerships• Last year staff brought in more than $1.1 million in grant funding for MCS 87 Faculty & Staff received 123 individual grants

• An Example: Partnership with Meridian Health Services have brought additional nine social services support personnel into schools

Additional Considerations• Consideration to exempt MCS from SB 309, if it passes. That will cost MCS nearly $27 million if it passes• Consider some relief for MCS in regard to the tax cap• Exempt schools like MCS in significant fiscal condition from selling property to a charter school at anything below market price