§ 6-1.1-20.3-6.8 — Designation of Gary Community School Corporation as a distressed political subdivision; powers and duties

Indiana § 6-1.1-20.3-6.8

• Jurisdiction: Indiana
• Art. 1.1: PROPERTY TAXES
• Ch. 20.3: Distressed Political Subdivisions

Text

8. (a) This section applies only to the Gary
Community School Corporation.
(b) The general assembly finds that the provisions of this section:
(1) are necessary to address the unique issues faced by the Gary
Community School Corporation; and
(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.

Legislative History

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.