Gary schools financial advisor Jack Martin at the Miller Citizens Corp. meeting

Gary schools financial advisor meets the public

Contributed By:The 411 News

A full accounting of the finances of Gary’s school corporation to its public was one of Jack Martin’s promises after his firm Martin, Arrington, Desai & Meyers, P.C was selected in 2015 as the district’s financial adviser. His first meeting with that public came Monday night, hosted by the Miller Citizens Corporation.

It may not be his last public question and answer session as the November ballot includes a referendum asking Gary voters to approve a property tax hike for its public schools. The district wants $7.5 million in additional revenues a year for the next 7 years and is requesting an increase of $0.4750 on every $100.00 of assessed property value.

Gary voters turned back the referendum by 1300 votes in the 2015 Primary Election. This time it comes before the voters with selections for school board members and a Presidential Election on the ballot. Those races will likely bring out more voters.

The Miller area plays a critical role in elections as it is the most populated section in Gary.

MCC member George Rogge’s statement “how would the schools use the extra revenues with declining enrollment and fewer schools open” was the opening for Martin.

A condition of the $15 million loan from the state’s Common School Fund Loan program in 2015 to help the school district pay its utility bills and meet obligations for employee withholding taxes was the district had to hire a financial advisor.

Before delving into hard financial facts, Martin described his company’s success at securing a safe place for the school district’s art collection. About which he said “… was stored in such a way that in 2 years there wouldn’t be nothing left due to mold and mildew. And I wasn’t going to let my company’s name be faulted for mishandling art with a worth of a multi-million dollars.”

Martin laid out reductions for the 2015-16 school year in staff and staff fringe benefits. He detailed reductions in property insurance premiums and food service program paybacks.

Martin said he is proposing to cut 120 more employees. “I have identified another reduction in force that is going to happen immediately, I hope, of about 40 employees.”

Martin has the tough job of serving two masters. He has to be a watchdog for the state’s monies. And the district’s need to deliver education to its students must be satisfied. He said, “We have to convince the state and the Distressed Unit Appeals Board that we have cut all we can cut.” On the other hand, Martin said, “I have asked the state and the DUAB not to give us any more monies until we have done all we could do as a school corporation to right our ship and reduce expenses.”

Martin is scheduled to make a presentation to the DUAB on the Gary schools finances on September 23rd. His presentation was to have been made on September 1 but he was advised to delay it until he conferred with the school district and Gary’s mayor.

The district is current on all of its debt payments, Martin said. “The big issue is the district’s annual operating expenses. If we can get that under control then we can make it.” He said a major part in reducing those expenses would be passage of the referendum.

An audience member had harsh words for the presentation. Myrna Foley told Martin, “You were brought in here to shut us down, like you did in Detroit. They chased you out of town.”

Along with seeking more revenues from property taxes, the district has asked its legislators to push for a bill in the General Assembly that would forgive the monies it has borrowed from the state of Indiana. The school district also is looking to receive funds from Gary’s TIF districts.

Story Posted:09/15/2016