Indiana Board of Finance OKs $3.1M loan for Gary schools

Indiana Statehouse. (WISH Photo)

INDIANAPOLIS (AP) — The State Board of Finance has agreed to loan the financially struggling Gary schools $3.1 million.

The (Northwest Indiana) Times reports the board unanimously agreed Tuesday to approve the Common School Fund loan for the Gary Community School Corp. to cover payroll through late October, to cover current and some overdue employee health insurance premiums and to meet other short-term expenses.

The Indiana Distressed Unit Appeals Board recommended approving the loan last week.

State-appointed emergency manager MGT Consulting Group is operating the school district after its elected trustees failed to pass balanced budgets and ran up more than $100 million in debt.

MGT Executive Vice President Eric Parish says additional loans likely will be needed until the company can get a balanced budget in place.