Gary schools manager asks for more state loans to operate

INDIANAPOLIS (AP) - The manager of the financially struggling Gary schools says the district will need state loans on a regular basis to maintain operations.

The (Northwest Indiana) Times reports that Gary Community School Corp. emergency manager Peggy Hinckley told the Indiana Distressed Unit Appeals Board on Tuesday that ongoing state support is needed. She says that's because of the projected loss of 500 students compared to last year and district financial records that are "in total disarray."

Hinckley says the district has a $1.7 million monthly deficit and is trying to reduce about $8.5 million in bills. Records show it owes another $40 million for loans and bonds.

The state has taken over the district and given near-total control to Hinckley. The board endorsed a $3.1 million loan to pay bills through mid-October.

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Information from: The Times, http://www.nwitimes.com