Indiana Code 6-1.1-20.3-6.8. Designation of Gary Community School Corporation as a distressed political subdivision; powers and duties
(b) The general assembly finds that the provisions of this section:
Terms Used In Indiana Code 6-1.1-20.3-6.8
- Appeal: A request made after a trial, asking another court (usually the court of appeals) to decide whether the trial was conducted properly. To make such a request is "to appeal" or "to take an appeal." One who appeals is called the appellant.
- board: refers to the distressed unit appeal board established by section 4 of this chapter. See Indiana Code 6-1.1-20.3-1
- Corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name.
- distressed political subdivision: means a political subdivision designated as a distressed political subdivision under this chapter. See Indiana Code 6-1.1-20.3-2
- political subdivision: has the meaning set forth in IC 36-1-2-13. See Indiana Code 6-1.1-20.3-3
- Precedent: A court decision in an earlier case with facts and law similar to a dispute currently before a court. Precedent will ordinarily govern the decision of a later similar case, unless a party can show that it was wrongly decided or that it differed in some significant way.
(2) are not precedent for and may not be appropriate for addressing issues faced by other school corporations.
(c) As used in this section, the following definitions apply:
(1) “Chief academic officer” means the chief academic officer appointed under subsection (h).
(2) “Chief financial officer” means the chief financial officer appointed under subsection (g).
(3) “School corporation” refers to the Gary Community School Corporation.
(d) The Gary Community School Corporation is designated as a distressed political subdivision for purposes of this chapter until the school corporation’s designation as a distressed political subdivision is terminated as provided in section 13(b) of this chapter. This designation as a distressed political subdivision is effective regardless of whether the school corporation has submitted a petition requesting to be designated as a distressed political subdivision. The emergency manager shall hold a monthly forum to provide an update on the Gary Community School Corporation within the school district that is open to the general public.
(e) Until the school corporation’s designation as a distressed political subdivision is terminated as provided in section 13(b) of this chapter, the following apply to the emergency manager appointed under section 7.5 of this chapter for the school corporation:
(1) The emergency manager has the powers and duties specified in this chapter.
(2) Notwithstanding section 7.5(d) of this chapter, the distressed unit appeal board shall:
(A) determine the compensation of the emergency manager; and
(B) subject to subsections (g) and (h), pay the emergency manager’s compensation and reimburse the emergency manager for actual and necessary expenses from funds appropriated to the distressed unit appeal board.
(3) Before appointing the emergency manager, the distressed unit appeal board shall interview at least one (1) resident of the city of Gary as a candidate for the position. If the distressed unit appeal board is not able to interview a resident of the city of Gary as a candidate for the position, the distressed unit appeal board shall interview at least one (1) individual who is a resident of Lake County or northwest Indiana as a candidate for the position.
The appointment of the emergency manager for the school corporation is terminated on the date the school corporation’s designation as a distressed political subdivision is terminated as provided in section 13(b) of this chapter.
(f) In addition to any other actions that the distressed unit appeal board may take under this chapter concerning a distressed political subdivision, for a distressed school corporation, the distressed unit appeal board may also do any of the following:
(1) The distressed unit appeal board may delay or suspend, for a period determined by the board, any payments of principal or interest, or both, that would otherwise be due from the school corporation on loans or advances from the common school fund.
(2) The distressed unit appeal board may recommend to the state board of finance that the state board of finance make an interest free loan to the school corporation from the common school fund. The distressed unit appeal board shall determine the payment schedule and the commencement date for the loan. If the distressed unit appeal board makes a recommendation that such a loan be made, the state board of finance may, notwithstanding IC 20-49, make such a loan for a term of not more than ten (10) years.
(3) The distressed unit appeal board may establish benchmarks of financial improvement for the school corporation.
(4) The distressed unit appeal board may provide a grant or grants to the school corporation from funds appropriated to the distressed unit appeal board, in amounts determined by the distressed unit appeal board, to assist the school corporation in overcoming short term financial problems.
(g) The emergency manager shall employ a chief financial officer for the school corporation. The chief financial officer is an employee of the school corporation. The chief financial officer shall report to the emergency manager and shall assist the emergency manager appointed for the school corporation in carrying out the day to day financial operations of the school corporation. The compensation of the chief financial officer shall be determined by and paid by the school corporation. The chief financial officer:
(1) must possess, through both education and experience, an understanding of finance and financial management; and
(2) must possess any other experience and must meet any other requirements as required by the distressed unit appeal board to ensure that the chief financial officer is qualified to carry out the financial restructuring of the school corporation.
Before employing a chief financial officer under this subsection, the emergency manager shall interview at least one (1) resident of the city of Gary as a candidate for the position. If the emergency manager is not able to interview a resident of the city of Gary as a candidate for the position, the emergency manager shall interview at least one (1) individual who is a resident of Lake County or northwest Indiana as a candidate for the position.
(h) The emergency manager shall employ a chief academic officer for the school corporation, after consultation with the department of education, who must have experience working with or for an urban school corporation. The chief academic officer is an employee of the school corporation. The chief academic officer shall report to the emergency manager and shall assist the emergency manager appointed for the school corporation in carrying out the academic matters of the school corporation. The compensation of the chief academic officer shall be determined by and paid by the school corporation. The chief academic officer must:
(1) hold a valid license to teach in a public school under IC 20-28-5;
(2) possess, through both education and experience, an understanding of curriculum and academics; and
(3) possess any other experience and meet any other requirements as required by the distressed unit appeal board to ensure that the chief academic officer is qualified to carry out the academic goals of the school corporation.
Before employing a chief academic officer under this subsection, the emergency manager shall interview at least one (1) resident of the city of Gary as a candidate for the position. If the emergency manager is not able to interview a resident of the city of Gary as a candidate for the position, the emergency manager shall interview at least one (1) individual who is a resident of Lake County or northwest Indiana as a candidate for the position.
(i) The chief financial officer and chief academic officer shall assist the emergency manager in carrying out the emergency manager’s duties under this chapter.
(j) The annual budget adopted by the emergency manager for the school corporation must dedicate a significant part of the school corporation’s budget to eliminating the school corporation’s outstanding financial obligations. The emergency manager shall attempt to negotiate with the creditors of the school corporation to establish a plan specifying the schedule for paying each creditor. The emergency manager shall submit the plan to the distressed unit appeal board for approval. The distressed unit appeal board must:
(1) review the plan submitted by the emergency manager; and
(2) not later than sixty (60) days after the plan is submitted, either:
(A) approve the plan as submitted by the emergency manager; or
(B) modify the plan as submitted by the emergency manager and then approve the modified plan.
(k) The emergency manager shall consider any recommendations from the mayor of the city of Gary in developing the school corporation’s annual budget. The distressed unit appeal board must review and approve the school corporation’s annual budget that is proposed by the emergency manager.
(l) After considering any recommendations from the mayor of the city of Gary, the emergency manager shall do the following:
(1) Conduct a financial and compliance audit of the operations of the school corporation.
(2) Develop a written financial plan for the school corporation. The object of the plan must be to achieve financial stability for the school corporation, and the plan must include provisions for paying all of the school corporation’s outstanding obligations and for paying all future obligations of the school corporation (including any federal, state, or local taxes or assessments) in a timely manner.
(m) In addition to the report required by section 8.5(c)(5) of this chapter, the emergency manager, the chief financial officer, and the chief academic officer shall report quarterly to the distressed unit appeal board in a format specified by the distressed unit appeal board. The report must include:
(1) information concerning the actions that the school corporation is taking to improve the financial condition of the school corporation; and
(2) any other information required by the distressed unit appeal board.
The emergency manager shall report more frequently than quarterly if requested by the distressed unit appeal board. The emergency manager shall provide copies of the report to the mayor of the city of Gary.
(n) The school corporation shall do the following:
(1) Publish a copy of each report under subsection (m) on the school corporation’s website, along with a link to the main page of the Indiana transparency website established under IC 5-14-3.7 to provide access to financial data for local schools.
(2) Make copies of each report available free of charge to the public upon request.
(3) Provide copies of each report to the mayor of the city of Gary. The mayor shall make copies of the reports available free of charge to the public upon request.
(o) The chief academic officer shall develop an education plan to provide academic services to students in the school corporation and to achieve academic progress. The education plan must include at least the following components:
(1) An academic program designed to meet Indiana’s academic standards and to assist students in meeting those academic standards.
(2) A plan to improve the academic performance of all students, including improvement in the performance of students on standardized tests.
(3) A plan to engage parents in school performance and school activities, including regular meetings at each school involving administrators, teachers, parents, and interested members of the community.
(4) A plan to implement performance standards that will attract students and families to the school corporation.
(5) A plan specifying how the school corporation will work directly with the city of Gary:
(A) to make the schools a successful component of life within the city; and
(B) to develop a sense of pride and progress in the operations and accomplishments of the school corporation.
As added by P.L.241-2017, SEC.8. Amended by P.L.213-2018(ss), SEC.5; P.L.10-2019, SEC.37; P.L.43-2021, SEC.31; P.L.184-2023, SEC.6.