When four new members join the Gary Community School Corp. board Thursday, a current member said finding ways to tackle the cash-strapped district’s debt will be its main priority.
“That will be the No. 1 challenge that we are faced with,” Dist. 3 board member Nellie Moore said.
A perfect storm of factors – declining enrollment, less revenue under state-mandated property tax caps, changes in the school funding formula and low property tax collections in Gary – have combined to place the district in a position of dealing with a more than $75 million budget deficit.
New members joining the board this week are Carlos Tolliver, Robert Buggs, James Piggee and Norman Bailey.
Tolliver said he will also focus on academic improvement and increased transparency.
When school started last August, the district identified multiple strategies including a bill to eliminate its debt is expected to be introduced in the Indiana General Assembly, a general fund property tax referendum that was narrowly defeated on Nov. 8, a loan from the Distressed Unit Appeals Board, and even requesting tax-increment financing district money from the City of Gary.
In September, the district’s state-appointed financial manager, Jack Martin, spoke in depth about its numerous financial challenges. He said much of the cuts that have been instituted over the past few years have been focused on eliminating the district’s annual operating deficit, which has occasionally delayed payroll for employees.
On Dec. 23, the board voted to renew Superintendent Cheryl Pruitt’s contract through June 2019. It also voted to close two buildings and the New Tech program at the Gary Career Center in an effort to cut costs.
During that meeting, State Rep. Charlie Brown, D-Gary, warned the board that it faced skepticism in Indianapolis for its failure to carry out prior recommendations to shutter buildings to help tackle some of its debt.
Brown said it was important for the board to show lawmakers it would act to close schools, or additional state support “will be moot,” he said. Legislators returned to the Statehouse for a new session this week.
The board estimates that closing Williams Annex would save $1.489 million, closing New Tech would save $1.5 million and closing Jefferson would save $2.094 million.
Students from Williams Annex originally scheduled to be moved to Williams Elementary; administrators instead moved them this week to Bailly Preparatory Academy, Moore confirmed.
Lawmakers should “take a serious look” at efforts it has made to cut costs, she said.
“Gary is not just sitting here, doing nothing to help itself,” Moore said.
Twitter: @meredithcolias
