Muncie vs. Gary schools: 10 state takeover facts

MUNCIE — Should the state designate Muncie Community Schools as a "distressed political subdivision" like Gary Community School Corp.?

That is the subject of a public hearing at 6 p.m. on Monday at Northside Middle School.

The Gary district already has been stamped by the state as a distressed political subdivision under the full control of a state-appointed emergency manager. For now, MCS remains labeled by the state as merely a "fiscally impaired" district being assisted by a state-appointed emergency manager.

Here's how the two deficit-ridden, enrollment-losing school districts compare in some categories:

Enrollment (2016-17): Gary, 5,823, Muncie, 5,690.

Students on free meals: Gary, 77%, Muncie, 68%.

Ethnicity: Gary, 93% black, Muncie, 63% white.

A-F Accountability grade: Gary, F, Muncie, C.

Under Senate Bill 567 enacted this year, Muncie's emergency manager would act a little differently if MCS joins Gary as a distressed political subdivision. Here's how:

1) What powers are granted to the emergency manager at Gary?

All of the power, authority and responsibilities of both the superintendent and the school board. The emergency manager sits atop the organizational chart.

2) What powers would be given to the emergency manager at MCS if it were named a distressed political subdivision?

The same as Gary's. "The emergency manager would have full control over both academics and finances for the school corporation," according to Courtney Schaafsma, executive director of the state's Distressed Unit Appeal Board.

3) What is a "fiscal management" board?

In the Gary district, it's a four-member board appointed by the mayor, the school board, the state superintendent of public instruction, and the state board of education. The board makes recommendations to and advises the emergency manager. But there would be no such board at MCS.

4) Who appoints the chief financial officer (CFO) and the chief academic officer (CAO)?

At the Gary district, the emergency manager chooses the CFO and CAO. " … there would not be a fiscal management board in Muncie, nor would the emergency manager be required to employ a CAO and CFO for Muncie Community Schools," Schaafsma told The Star Press. "Those provisions are specific to Gary Community School Corp. In regards to the CAO and CFO positions, the difference is largely a recognition that Muncie Community Schools already has filled key roles for the operations of the school corporation. We would not expect the emergency manager to eliminate these roles."

5) How often can the Gary school board meet?

No  more than once a month.

6) How often could the Muncie school board meet?

There would be no limitations. It normally meets twice a month.

7) How much are the emergency managers costing the state?

In Gary, the base pay for the emergency manager, who is in total control of the district, is $3.25 million for 2017-18, plus performance incentives of up to $650,000. For example, MGT Consulting Group, the emergency manager, earned a $100,000 bonus for achieving a "smooth start" to the school year this fall.

That means all of the necessary school buildings were open and met basic environmental criteria, such as a majority of the bathrooms were working and students were provided toilet paper and soap.

When MGT took over on Aug. 1, six roofs were in disrepair, about half of the district's toilets or sinks were broken, most toilet paper dispensers and soap dispensers were missing, and fire alarm/suppression systems were in violation of state codes.

MGT's base pay for year two of its contract is $3 million, plus performance incentives not to exceed $800,000 if, for example, test scores improve or if there is an increase in enrollment.

The emergency manager in Muncie, Administrator Assistance, signed a $300,000 contract for the six month period starting July 1 and ending Dec. 31.

8) Who will determine whether to declare MCS a distressed political subdivision?

DUAB. 

9) What else could DUAB do?

DUAB could conclude that MCS has achieved financial stability and terminate the emergency manager, and things would return to normal on Jan. 1.

10) Who will serve as emergency manager if MCS is designated as distressed? 

"In terms of the appointment for the emergency manager, the process to be followed for that appointment would have to be determined by DUAB if DUAB were to designate Muncie Community Schools as a distressed political subdivision," Schaafsma said. She couldn't answer how much it would cost for a Gary-like emergency manager in Muncie.

Seth Slabaugh is an education reporter at The Star Press who can be reached at (765) 213-5834 or seths@muncie.gannett.com.