Peggy Hinckley

Gary Emergency Manager Chips Away At Operating Defecit

Aug 21, 2018

The state-appointed manager of the Gary Community School Corporation told state officials Monday the district faces less of a deficit than it did a year ago.

The annual operating deficit is  $15 million -- that’s $7 million less than the original deficit when state lawmakers approved the takeover. 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.

State lawmakers want to figure out how to identify and help school corporations before they fall into financial distress.

Monday a study committee heard about possible ways to evaluate a district’s income and debt.