Indiana school district seeking loan to prevent shutdown

Officials of an eastern Indiana school district say the system won't shut down despite predictions that it'll run out of money by the end of the year.

Bob Coddington, chief financial officer at Muncie Community Schools, told The Star Press that the district is working to secure funding so it can meet payroll and other expenses. The district is facing an $8.5 million general fund deficit.

Coddington said the district is pursuing a loan from the state's Distressed Unit Appeals Board. The district could get as much as $5 million from the board.

The district must submit a petition and supporting documentation to the board. The board would then make a recommendation to the State Board of Finance which has final approval over the request.

The school system enrolled 18,813 students in 1965 but had just 5,690 a year ago.