Peggy Hinckley

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.

Gary Schools Strikes Deal with IRS, Settles $7M In Debt

Apr 16, 2018

A new deal between Gary Community Schools and the Internal Revenue Service will provide some relief as leaders continue to address a complex financial situation. The deal comes as the state also considers another loan for the community’s schools.

Legislative Services Agency

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.

The state’s Legislative Services Agency, a bipartisan legal analysis group, offered different indicators and methods to analyze those indicators, such as outstanding bond debt and income, to figure out if a district is fiscally sound or trending into trouble.