Gary Emergency Manager Chips Away At Operating Deficit

The state-appointed emergency manager of the Gary Community School Corporation told state officials this week the district faces $7 million less of a funding deficit than it did a year ago.

Its current deficit now sits at $15 million. Eliminating the deficit by the end of 2019 remains the manager’s goal.

Yet the district remains in debt by $98 million, much of that coming from outstanding bonds and loans from banks and the state.

School corporations in Gary and Muncie were both put under some form of state control by the state legislature in 2017 because of large financial deficits and other issues lawmakers saw as dire.

Gary emergency manager Peggy Hinckley closed a school and cut staff to reduce spending. She also created a middle school building by reconfiguring grades at the district’s nine buildings.  She hopes the move will attract new families.

“We’ve worked very hard to make that a premier facility. They’ve had a great reception there. We have a high school, so now we are working hard to promote that one high school. ”

Enrollment has dropped by nearly 40 percent since 2013 as families decide to attend districts in neighboring cities or area charter schools.

Hinckley wants enrollment to remain around 5,000 students for this current school year.  So far, around 3,500 have enrolled since classes began last week. Fewer students would cause the district’s deficit to grow.

Hinckley’s team is planning to ask voters to approve a property tax increase referendum in November 2019, according to a report released to the Distressed Unit Appeal Board on Monday.  Holding the referendum then, the report says, would give the Gary Community School Corp. more time to promote positive changes at the district.

IPR’s Stephanie Wiechmann contributed to this report.