Gary, Ind. schools may not be able to pay teachers in 2013

October 11, 2012 2:59:30 PM PDT
School officials in Gary, Indiana, say a budget crisis could impact the district's ability to pay teachers next year.

Gary Teachers Union President Joseph Zimmerman warned members that if the district runs out of money they may not get paid after the end of the year.

Zimmerman, who issued the notification after a Tuesday school board meeting, asked his 900 union members for input. Meanwhile, Gary school officials insist teachers will be paid despite the budget deficit.

Gary Community School Corporation spokesperson Charmella Greer said the district has secured a $3.7 million loan, and earlier this week the board passed a resolution to accept a $5.7 million loan from the Indiana Bond Bank.

Administrators said they had a $23 million shortfall.

Officials on both sides blame the deficit on the growth of charter schools in Gary, which means a decrease in student enrollment and a drop in the amount of money received from the state. The district got roughly $77 million this year compared to the $94 million of last year.

School officials say they've secured funds to cover expenses until the end of the year, but it's not clear what would happen after January.

District officials say another set of layoffs is necessary to keep schools open and close the budget gap. All options will be considered at the next board meeting.


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