Successful debt reduction and challenges from the coronavirus pandemic are key factors in the state’s decision in considering a new three-year contract with MGT Consulting to manage the Gary Community School Corp.
The Distressed Unit Appeal Board didn’t vote on the contract renewal Thursday after it heard a presentation from MGT officials and took public testimony. DUAB chairman Justin McAdams said MGT offered stability in the midst of the coronavirus pandemic and showed progress in slashing debt.
No date was set for a vote, but it would likely be by July when MGT’s 2017 contract expires.
“We know from our experience here stability has been a challenge for the district and it’s a factor that rates highly for us,” McAdams said during the meeting via the Zoom networking platform.
While DUAB members praised MGT for reducing debt, they also voiced concerns over academic performance and the dramatic graduation rate decline at the West Side Leadership Academy. The school’s graduation rate plummeted from 86% in 2018 to 58.5% last year.
Eric Parish, MGT vice president, blamed the drop on a “perfect storm” that included an inattentive guidance counseling office and the lack of credit recovery programs.
Interim emergency manager Paige McNulty said changes at West Side said incoming freshmen will be assigned the same counselor throughout their four years of high school. West Side is now the lone high school in the district.
“We will follow kids from their freshman to senior year,” she said. “They weren’t tracking kids who were leaving during the school year and seeing where they went. That hurt the cohort.”
McNulty said she checks West Side’s progress daily now. “As of today, we’re at 75%. We’re not satisfied.”
Parish and McNulty outlined a three-year plan aimed at removing Gary from distressed status.
“Moving forward with MGT provides the best outcomes in the shortest amount of time,” Parish said.
Under MGT’s turnaround efforts, Parish said the district has a standardized curriculum and books aligned to the state Department of Education. In addition, it’s added a STEAM lab, coding classes and increased career, technical education offerings. There are monthly performance assessments and professional and leadership development programs for teachers and administrators.
MGT arrived in August 2017 as enrollment dropped by 535 students when school opened. Parish said the enrollment decline has stabilized, but admitted it’s still dropping, though not as severe.
MGT pledged to begin a 12-month enrollment campaign, recruiting students to tell the district’s story to the community.
In 2017, the General Assembly enacted a law taking over the Gary schools after its accumulated debt rose more than $100 million and its annual operating deficit was $22 million. Gary’s school board and superintendent were eliminated and all academic and financial authority was given to MGT and an emergency manager.
Since then, Parish said the annual operating deficit has dropped to $6 million and its accumulated debt, mostly from state loans, is about $84 million.
“We presented a clear three-year plan to end state control,” said Parish. “Now is not the time to make a change, it’s time to move forward.”
State Rep. Vernon Smith, D-Gary, a non-voting DUAB member, praised MGT for its fiscal leadership, but maintained it hasn’t improved academics. He asked that MGT be given a one-year contract, not three years.
Five elementary schools received failing grades in ILEARN scores released in March.
Mayor Jerome Prince said he expects the district to emerge from its takeover with higher grades than when it began.
He hoped the accumulated debt could also be eliminated.
“I’d like to see what the footprint looks like after the takeover ends,” Prince said.
Carole Carlson is a freelance reporter for the Post-Tribune.
