The organization said it changed its stance because the university would be less likely than the state-appointed emergency manager to cut art, music and other classes.

Democratic state senators from northern Indiana say a school finances bill that enforces more rules on the distressed Gary and Muncie districts will eliminate public participation in public school systems.

The state-appointed manager of the Gary Community School Corporation told state officials Friday the district faces an $18 million annual deficit.

States have used different methods to reform urban districts in fiscal and financial peril. In Indiana, the controversial decision was made to give a single manager absolute power of the Gary Community School Corporation. But will it work?

An Indiana Senate committee has decided to postpone voting on a controversial school financials bill because of its effect on Muncie and Gary schools.

A shortfall of about $9 million was initially projected because of an unanticipated increase in statewide student enrollment.

New data on student enrollment says the school funding shortfall is more than double the initial estimates lawmakers revealed late last year.

The bill now goes to the Senate side of the General Assembly for consideration.

House Bill 1315 is aimed at giving the state more control over financially-distressed school districts, but it has faced strong criticism.

But, some key provisions of the bill are causing concern.