GARY, Ind. (AP) — Gary's cash-strapped school district has won preliminary approval to borrow $3.3 million to cover its employee payroll expenses this fall.
The Indiana Distressed Unit Appeals Board unanimously recommended Thursday that the Gary Community School Corp. receive the state loan to cover employee payroll expenses for October and November.
The (Northwest Indiana) Times reports the State Board of Finance will now decide Tuesday whether to finalize the 10-year, zero-interest loan.
The loan request is the first since April by the northwestern Indiana school district, which is overseen by a state-appointed emergency manager.
Before the emergency manager was appointed last year to replace the elected school trustees, the district was borrowing from the state nearly every month to meet its expenses in the face of declining student enrollment and property tax revenue.