School City of Hammond officials say the continued impasse in collective bargaining talks with the Hammond Teachers Federation has complicated and delayed other cost-cutting measures needed to meet a state-ordered corrective action plan to trim its budget deficit.
The district sent out a press release this week after meeting Feb. 26 with the state Distressed Unit Appeal Board, which monitors the financial health of school districts.
Since the impasse with teachers, a state-appointed mediator is overseeing talks. Teachers rejected a proposal on Dec. 22. On Dec. 27, the union filed an unfair labor practice complaint against the district.
In November, after voters failed to renew an operating referendum that brought $15 million into the district annually, the DUAB issued an order requiring cuts across the board.
The district presented a corrective action plan to DUAB but said the state agency requires the plan to remain confidential by state law “as any number of factors can come into play to affect the timing and necessity of various actions.”
DUAB executive director Pete Miller said its goal is to intervene early enough so no district gets to the point they’re unable to pay their bills. He said DUAB does not dictate any specific cuts to districts.
The release detailed factors leading to the financial shortfall:
· Increased health insurance costs in last two years. Because the bargaining agreement capped the teachers’ contribution, the school district is absorbing the remaining cost resulting in an additional $5 million expense in the 2023-24 school year.
· A 2021 11.4% base salary increase for teachers cost $7.6 million and an additional 3.2% raise in 2022 tacked on another $2.4 million.
· Enrollment declined 1,581 students from 2019-20 to 2023-24 triggering a loss of $12.5 million.
· The operating referendum’s nonrenewal by voters cost the district $15 million annually.
The press release cited an abundance of misinformation circulating in the community and it has responded with a “frequently asked questions” section on the district’s website, hammond.k12.in.us.
Hammond Teachers’ Union president Louis Gikas didn’t respond to a request for comment by press time.
One FAQ asks if another referendum is being considered and the district said it needs 500 signatures to place another referendum renewal on the fall ballot. The school board would make that decision.
The district also said it intends to close the administration center at 41 Williams St. after this school year. Probable locations are the Welcome Center at Columbia, 1238 Michigan St. or the Hammond Area Career Center, 5727 Sohl Ave.
Officials said once a decision on closing schools is finalized, it will be placed on a board meeting agenda and voted on in public.
Carole Carlson is a freelance reporter for the Post-Tribune.