At Thursday night’s Gary Community School Corporation board meeting, district leaders shared news that brought both celebration and concern, highlighting the complicated road ahead for the city’s public schools.

Renita Craig, director of curriculum and assessment, announced that Gary schools have secured an $800,000 Next Generation School Improvement Grant from the Indiana Department of Education. Gary is one of only four districts statewide to win the competitive award, which drew 60 applicants.

“This grant represents a new funding model for the Indiana Department of Education, awarding fewer districts with larger amounts of funding in order to make a bigger impact,” Craig said. 

The money will support initiatives like personalized learning, flexible schedules, tutoring, leadership development, training in the science of reading, school visits, and the launch of a Parent Advisory Council. Superintendent Yvonne Stokes and board members stressed that community input will be key, with residents invited to join planning sessions and focus groups alongside district leaders and state representatives.

The Gary Community School Corporation said the grant launches its 2025-26 planning year. Based on completion of benchmarks set by the Indiana Department of Education, the district anticipates qualifying for a three-year implementation grant worth between $3 million and $8 million. The final amount will be determined over the next 8 to 12 months.

The board also had to confront a new financial hit from Senate Bill 1, which changes how property tax revenue is shared between Gary’s traditional public schools and charter schools. Under the law, the “incremental levy” — calculated from recent levy averages — must be split based on student enrollment. For 2025, Gary schools will get 44.89% while 11 charter schools throughout the city will receive 55.11%, redirecting about $2.4 million away from the district.

District finance officials said the change has already affected cash flow. The June property tax disbursement was smaller than expected, forcing the district to borrow from other funds to make debt and loan payments, according to Linda Zaborowski, the board’s chief financial officer.

Board members also warned that future budgets will have to be reworked to absorb this ongoing loss, adding another layer of complexity to the district’s financial planning.

“If I would have had this June disbursement and not had to share, I would have been able to make all the debt and common school loan payments,” Zaborowski said, referring to loans from Indiana’s Common School Fund, which offers low-interest financing to school districts. She added that she had to borrow from operations funds to cover $728,000 in debt, loan and state school loan obligations.

The meeting ended with a mix of optimism about the opportunities ahead and caution about the fiscal realities the district must navigate. 

“We’ve got a chance to do something transformative, but we’re going to have to do it while tightening our belts,” said Michael Suggs, chair of the Gary Community School Corporation. 

In other business, Eric Smoot, a Horace Mann graduate and former track star who has provided school supplies to students for years, was recognized for his contributions.

In honor of his coach and former teacher, Roosevelt Pulliam, Smoot and fellow alumni created the Roosevelt “Chief” Pulliam Scholarship Fund. The first $2,000 scholarship was awarded Thursday to KeRon Maxey, a West Side Leadership Academy graduate, who exemplified leadership, perseverance and service.

Calvin Davis is Capital B Gary's government and politics reporter. You can reach Calvin at calvin.davis@capitalbnews.org.