MUNCIE, Ind. -- Muncie Community Schools will ask the state of Indiana for a multi-million dollar loan to help cover costs as the district tries to dig itself out of a financial crisis.
Tuesday night, Superintendent Steve Baule proposed the idea of submitting a petition to the state’s Distressed Unit Appeals Board for a $5 million loan.
Baule said the loan would be a short-term solution to help cover the cost of school operations including teacher salaries.
“In the short term, in order to make payroll and make sure our processes in the schools can continue to function, we need to get a loan,” said Baule.
Baule said the schools had an $11.5 million structural deficit last year.
The board unanimously approved the proposal.
The school system will now gather their paperwork and formally submit the request to the state, which will include how the district will eventually pay the money back.