School buildings are closed statewide for at least another month, and it's up to locally elected school boards to decide whether, and how, to pay hourly workers.

Gary and Muncie schools were taken over for financial problems last year, and lawmakers sought a solution to prevent similar situations from unfolding elsewhere.

Legislation passed this year by state lawmakers directed Indiana's Distressed Unit Appeals Board to form a committee to determine which financial conditions should trigger a state review of school district finances.

Lawmakers passed a controversial school financial management bill earlier this year, and part of it requires a committee to create a list of risk factors for the state to watch, in order to protect more schools from fiscal distress.

The Indiana Distressed Unit Appeals Board unanimously recommended Thursday that the Gary Community School Corp. receive the state loan.

The $12 million loan was authorized by the Legislature and Gov. Eric Holcomb under legislation authorizing Ball State University to take over governance of the school district.

Committee members will hear public comment on the issue this week as they begin the process of forming the list of indicators.

Several struggling Indiana school districts could eventually be impacted by a controversial school takeover bill legislators passed during the special session earlier this month.

The Ball State University Board of Trustees has approved the university taking over the financially troubled Muncie Community Schools - days after Gov. Eric Holcomb signed legislation allowing the move.

The new money is possible through legislation approved during Monday's one-day special session of the General Assembly.