ELKHART — 1,400 workers will be looking for work by September when Monaco Coach closes its plants in Elkhart, Nappanee and Wakarusa. The layoffs are forcing Elkhart Schools to prepare for some unwanted changes.

In less than a month, students in Elkhart will head back to the classroom. This year, the district will likely face a challenge.

"We're feeling like we could see a decrease in the number of students that enroll this year and more likely next year," said Elkhart Schools Communication Coordinator Jodee Shaw.

More than 1,300 students are enrolled in Elkhart Schools. The district could lose 100 kids from the recent layoffs, but officials don't think that drop will have a significant impact right away.

"Our funding this year will be based on last year's enrollment. So it would be really next year that we would feel a decrease,” said Shaw.

The news concerns people like Charlie Forbert. He has five grandchildren in Elkhart Schools.

"I can see them eventually trying to do away with the sports, maybe the music, and some of the outings that they get education from,” said Forbert.

School officials aren't talking about those types of cuts now. They're more concerned that people being laid off will have a hard time finding new work.

That could increase the number of students taking part in the free lunch and textbook program. Already, 60 percent of students in the district qualify.

"That money is reimbursed by the state, but for the past several years it hasn't been reimbursed at 100 percent. So we have been losing money in that vein, and that could hurt us more if more kids are in need," said Shaw.

The district remains optimistic about how much of an impact the layoffs will have, but officials say the key will be looking ahead.

"While we've seen the 1,400 layoffs at Monaco, we might be seeing a trickle down effect eventually as suppliers to Monaco might also start laying off people. So we want to keep our eye on that and see what happens overall," said Shaw.

The new property tax caps will also impact the budget. Elkhart Schools anticipates the state will cut funding by more than $1 million in 2010. That number could jump to $2.5 million in 2011.