After many years of operating at a deficit that ran into the tens of millions of dollars, the Gary Community School Corp. recorded a budget surplus at the end of 2021.
“Achieving a balanced budget is a landmark occasion, especially after GCSC ran a deficit of more than $20 million,” said Eric Parish, executive vice president of MGT, which led efforts to lead the district out of a deficit. “This accomplishment is due to many difficult decisions made by the state of Indiana, the MGT team, and district administrators, as well as the Gary community’s overwhelming backing of the 2020 referendum.”
GCSC’s deficit stood at $21.5 million when the state appointed MGT as the external manager in summer 2017. The district’s deficit has fallen each year since then and by the end of 2021, its budget saw a surplus of $2 million.
A combination of strategies led to reducing the deficit, officials said.
The first was a 2020 referendum, which added about $8 million in annual revenue. That was followed by adjusting district staffing to appropriate levels to reflect the students it serves.
At one time, GCSC had 56 administrators, not including principals or deans, making more than $4 million, not including benefits, bonuses, or travel expenses, officials said. Many of those positions have been eliminated.
The school district also opened bidding on many of its contracts, leading to competition among vendors and allowing GCSC to select the most affordable option.
Officials said as the district sought ways to cut spending, it invested to improve academics. During the last five years, teachers have received raises for the first time in a decade as well as three stipends.
The school district has also invested in new curricula and new career pathways, distributed a laptop or tablet to every student and teacher, and improved learning environments.
“Our team’s priorities are student safety and student academic success, and we have done the work to ensure our budget reflects these priorities,” said Paige McNulty, GCSC’s manager. “A lot of people put in a lot of time to make this happen, and we’re grateful for their efforts to create the conditions where more students can be successful.”
When MGT began managing the district in 2017, the short- and long-term debt was $104 million. That has been reduced to $71 million.
The district has a plan to build its reserves while also making investments in capital, repairs, and maintenance, officials said. GCSC will continue to pay down its negative fund balances while working to improve academics.
