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Muncie schools on track to run out of money by September, forced to make up $20M deficit

Posted at 5:47 PM, Aug 03, 2017

MUNCIE, Ind. -- Muncie schools are on track to run out of money in September and school officials say they are still working to secure funds to get them through the rest of the year.

The problems in the Muncie school district have been ongoing but the impact has been felt the hardest as students headed back to school this week.

A group of retired Indiana school officials was chosen last year to be a part of an Emergency Management Team and help lead Muncie Community Schools out of a multi-million dollar deficit.

The group put together a deficit-reduction plan that closed three elementary schools starting in the 2017 school year.

The Muncie Teacher’s Union said more than 140 teachers have resigned or retired in the last year amid the financial crisis.

“The financial situation for Muncie School Corporation is pretty stressful,” said Steve Wittenauer, Emergency Management Team Spokesperson.

Wittenauer said starting in 2018, Muncie Community Schools should be able to live comfortably in their yearly budget, but their immediate concern is recouping the $15-$20 million that they are already down so that they can get back on track.

In March, the district asked the state for a $5 million loan to keep the schools running.

Wittenauer said the Emergency Management Team has sought outside help, contacting the city and the Department of Education to help secure funds to make it through the end of the 2017-18 school year.


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