Hammond schools spending cut plan approved by state board
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The full details of the School City of Hammond’s massive required spending cuts were approved recently, per a posting to the district’s website.
The district’s financial plan—termed the corrective action plan—was approved late last month by the state’s Distressed Unit Appeal Board (DUAB) and calls for nearly $30 million a year in spending cuts.
The School City of Hammond has been under financial stress for a few years, and the negotiated budget comes as the district looks to avoid a state takeover. The tipping point for the significant cuts came last fall when voters in Lake County rejected a referendum that would have continued a property tax allocation to give the district revenue.
In a letter to district leaders, DUAB Executive Director Peter Miller said, “Although these decisions were extremely difficult, they will go a long way to stabilize the School Corporation’s finances well into the future.”
Though the plan was finalized recently, the district has already begun making cuts, including closing three elementary schools and eliminating 19 teaching positions, multiple administrative positions and 65 support staff positions.
The DUAB had been in contact with the district dating back to last summer regarding its financial stability and placed School City of Hammond on corrective plan status when the referendum failed.
Per our reporting partners at Lakeshore Public Media, School City of Hammond will have to meet twice a month with DUAB staff, maintain an 18-month rolling cash flow, maintain five-year rolling income and expense projections and give an annual presentation to DUAB. Any changes to the plan would have to be approved by DUAB.
The full plan can be found here.