To date, Indiana has taken over the financially troubled school districts in Gary and Muncie.

As of Jan. 1, Muncie Community Schools will be designated a "distressed political subdivision."

The district is selling multiple buildings and land - schools or former school locations that have closed, and one middle school that's still open this year.

The retirees sued the district in federal court after being banned from school property in February for "disruptive conduct."

A Brookston, Indiana-based company was chosen to take over the finances of Muncie Community Schools.

Under the final version of the bill, Muncie is essentially put on probation.

The Muncie Community Schools board held an emergency meeting last week to discuss ways to reduce the district's debt, in hopes of avoiding state intervention.

The House Ways and Means committee voted Monday to include Muncie schools in a bill that provides financial assistance for struggling districts.