Rosy financial news and the Gary Community School Corp. aren’t usually uttered in the same sentence.
This week, though, the district’s manager told the school board an unexpected infusion of money added $8.5 million into its coffers this year.
The money will be used for improvements, maintenance and the district’s new rainy day fund at the once-cash-strapped district whose deficit has grown so unsustainable, the state took it over in 2017.
A state loan deferral fund may also be tapped for the demolition of Norton Elementary, the top choice for the wrecking ball in a 2022 community survey.
Manager Michael Raisor told the school board Tuesday additional money came in last month from the city of Gary, increased spring enrollment, federal COVID-19 relief funding, and a higher-than-anticipated tax collection.
“Quite a bit has happened from last month,” Raisor explained. “The biggest change is in the operations fund.”
The unexpected enrollment increase added about $853,000 into the operations funds, Raisor said. Gary has about 4,076 students, according to the state. That’s up more than 200 from the fall count.
Meanwhile, the city received a $504,000 check from the city. This week, the city sent an $82,000 check.
Raisor said the money came from a non-profit PILOT (payment in lieu of taxes) abatement agreement the city entered into more than 10 years ago. Under the agreement, the city should have been making $50,000 annual payments.
“Kudos to the newly-elected mayor and his administration,” said Raisor. “He made a commitment that the city of Gary will make the payments,” he said of Mayor Eddie Melton.
Raisor said the city asked him if the district would consider tearing Norton down to coincide with a Broadway revitalization project. He plans to brief the board on his decision next month.
The demolition cost could come from a state loan deferral fund that freed up money for improvements and school demolition.
Melton authored the bill when he served in the General Assembly.
Lew Wallace High School is the only school demolished with the money, so far.
“The city and the district will be in better condition if blight is removed,” said Raisor.
Vacant Norton school at 1356 Harrison St., where the body of a dead Portage woman was discovered in 2019, was the top pick of 92% of residents who responded to a survey ranking schools for demolition.
Carole Carlson is a freelance reporter for the Post-Tribune.