From the Northwest Indiana Times:
The Michigan City School Corp. is shedding just over 100 jobs to help close a $16 million budget deficit.
According to school officials, seven teaching positions and some administrative positions are being eliminated.
The vast majority of the layoffs are in areas such as classroom assistants, secretarial positions and maintenance.
Michigan City School Board member Beryle Burgwald said the deficit began accumulating during the several years it took to complete a countywide property tax reassessment starting in 2006.
No tax dollars were coming in during that time period forcing the school corporation to borrow funds to operate then pay back those funds with interest.
Without figures based on actual tax dollars coming into the district, budgets for upcoming years had to be calculated based on estimated revenues coming into the school corporation.
Burgwald said the projected monies coming in were overestimated, meaning the dollars spent turned out to be greater than the actual dollars coming into the district once the reassessment was completed in 2010.
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Burgwald said the staff reductions only narrows the deficit by about $1.6 million.
Half of the $16 million shortfall came from funds derived from the sale of Joy Elementary School to a building corporation, which is leasing back the school to the district, said Burgwald.
The school board created the building corporation, which legally is considered a separate entity.
Frowning on that move, Burgwald said the sale of the school on the surface appears to significantly drive down the debt but actually increases it in the long run from the lease payments.
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Another deficit reduction move included canceling early learning programs for children ages 3 and 4 at some of the elementary schools at a savings of $1.1 million.
A rainy-day fund supplied with money from the general fund and transportation fund was also created to apply revenue toward the deficit.
According to school officials, at least $1 million will have to be cut from next year's budget on top of what already has been taken out.
Greene said he wouldn't be surprised if a school was closed next year to further help offset expenses.
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http://www.nwitimes.com/news/local/laporte/michigan-city/michigan-city-school-officials-work-to-close-million-deficit/article_bdbc50c5-6b9c-5125-a235-c208f5d0abc4.html
