Monday, May 6, 2013

NWI Reports State Budget Contains Offer to Settle Gary Schools Lawsuit

From the Northwest Indiana Times:


The state budget approved April 27 by the Indiana General Assembly contains, as expected, appropriations for every state agency to carry out its work over the next two years.
Also included in the 279-page budget in House Bill 1001 are dozens of other sections setting state policy, adding new regulations, correcting previously approved legislation and, in at least one instance, trying to resolve a lawsuit.
Gary Community School Corp. sued the State Board of Education last year, challenging the estimated student count used to distribute funding to Roosevelt College and Career Academy, currently operated by EdisonLearning, Inc. on a turnaround basis.
A Marion County judge ruled in December the Indiana Department of Education, under Republican former Superintendent Tony Bennett, improperly paid Edison for the 2012-13 school year using Roosevelt's 2011-12 student count -- which was higher than the current number of students attending Roosevelt.
The judge ordered the state repay Gary Community School Corp. approximately $2 million wrongly taken from its funding and given to the turnaround operator.
Indianapolis Public Schools were awarded some $6 million for excessive deductions made by the state from their funding and given to four Indianapolis turnaround school operators.
The state has indicated it plans to appeal the ruling.
But state Sen. Luke Kenley, R-Noblesville, chairman of the Senate Appropriations Committee, isn't waiting for the court to act.
Seeking to cut out the middleman and save some money, Kenley inserted a settlement offer in the state budget: If Gary and Indianapolis schools agree to drop their claims against the state and the turnaround operators, the State Board of Education is immediately authorized to give them $7.4 million, about 90 percent of the money awarded in the lawsuit.
...
The school corporations have until June 2015 to agree to the proposed settlement.