Gary schools get loan deferral
The state Distressed Unit Appeal Board has approved the suspension of $25 million in Common School Fund loans for the Gary Community School Corp. until September 2024. The State Board of Finance must approve the action next.
The measure dovetails with a state law approved earlier this year, allowing for the loan deferral so the cash-strapped district will have money to make school improvements and demolish shuttered schools.
Eric Parish, a vice president with MGT Consulting, which manages the school district, said the monthly loan payments would not be eliminated. Instead, he said the payments would be redirected into a school improvement fund. He said the district’s debt levy would not be affected by the change and while the terms of the loans would be extended, the net cost would remain the same.
DUAB members also recommended the district consider Gary businesses, minorities and womenowned businesses as it begins construction improvement plans.
MGT official Amy Marsh said based on outreach with the community, demolition wasn’t a high priority. She said the district came up with an eight-phase 4-1/2-year plan that focuses initially on a roof replacement at the West Side Leadership Academy, its lone high school.
Also included in the first phase were boiler improvements at the Bethune Early Childhood Learning Center and the Gary Middle School, Marsh said.
“Reach out to locals to see if they can do work for a similar cost before you reach out beyond,” said DUAB member Paul Joyce, executive director of the State Board of Accounts. “We need to make sure we are reaching out and give opportunities in the community before going outside,” he said.
“If you want to be part of that community, you have to reach out… It’s almost essential,” said board member Rebecca Kubacki.
It will cost about $8 million to replace the entire roof at West Side, officials said. Initially, the roof above a small gym will be replaced. It will be completed in stages.
Marsh said improvements on the closed West Side swimming pool are scheduled for the third phase in the summer of 2021.
Joyce suggested the district review its coronavirus relief funding to determine if it can be used for roof repairs. He said a leaky roof could represent a health hazard that would impede the ability for social distancing.
In other business, state Rep. Vernon Smith, a nonvoting DUAB member, encouraged the district to connect with former Roosevelt College and Career Academy students and register them so the district won’t lose funding that he said could amount to about $1.6 million.
“Personalize the approach to those students, like a coach recruiting,” Smith said.
Interim emergency manager Paige McNulty said the district sent letters to families, held a virtual open house and hired Roosevelt teachers.
Hampered by maintenance issues, the district decided not to reopen the aging school at 730 W. 25th Ave. The future for the historic school is unknown at this time.
School officials said they are embarking on a plan to boost enrollment with social media, billboards and student ambassadors. As of Friday, McNulty said about 64% of students districtwide have registered for fall classes.
Finally, the DUAB approved a one-year $3.68 million food services contract with Sodexo Magic, its current provider.
“It made sense to continue with a third party provider,” said Parish. “The confidence level wasn’t high enough to bring it in-house.”