The Monroe County Community School Corporation approved its 2027 budget Tuesday night, with proposed spending of $176 million.

That's about $3.1 million less than the district's million budget for 2026, a difference of roughly 1.7 percent.

MCCSC Chief Financial Officer Matt Irwin explained that the proposed budget sets the maximum amount the district can spend and collect in property taxes next year.

"Remember that when we advertise and, in this case, adopt, we have set the ceiling on our budgets, levies, and rates," Irwin said. "This is based on the legislative parameters that we operate within to protect our budgets as the process unfolds."

About 48 percent of the proposed budget would go toward education, the same proportion as this year.

Another 24 percent would go toward operations, including expenses such as transportation and building maintenance. That's up from 21 percent in 2026.

The district's two voter-approved referendum funds account for about 17 percent of the proposed budget, while debt payments make up another 11 percent.

During Tuesday's meeting, Irwin also reported that MCCSC continues to lose students, a trend affecting how much money the district receives from the state.

But the latest student count was still slightly better than officials had anticipated.

"We had our certification in October, and our trend of demographic decline has continued," Irwin said. "But the way that I updated my projections, I had a more conservative number that was there than what we ended up certifying."

Because the district enrolled more students than it had budgeted for, MCCSC expects to receive more state funding in November and December than previously projected.

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Irwin also reported improvements in the district's financial reserves.

The education fund, which primarily supports classroom expenses, remains below the district's desired cash balance.

However, Irwin said the district is making progress toward rebuilding those reserves. The operations fund is also moving closer to its financial target, while projections for both referendum funds have improved since last month.

The board approved six budget-related resolutions Tuesday, covering spending, property taxes, building projects, school bus replacement and transfers between district funds.

The final 2027 budget and property tax rates will be determined through the state's approval process.