Gary seeks advice on dealing with debt after school referendum narrowly rejected

School board Vice President Rosie Washington said Wednesday the advice would be needed before school officials could decide how to cope with a lingering debt that is likely to continue to grow without additional sources of income for the school district.

"We have to decide how we're going to address this issue," Washington said. "We have to do something because we have serious financial problems."

The referendum question that was on ballots in Gary on Tuesday asked for a 47.5 cent per $100 of assessed value increase. If the district were able to collect about 75 percent of what would be owed, it was estimated by school officials the increase would raise about $8 million more per year for the schools system, officials said.

Voters didn't share the district's hopes, though, turning back the question, 50.87 percent to 49.13 percent. Of the vote, Washington said, "it's sad to see not enough people appreciated the need for this" levy increase.

Gary Common Council officials in recent weeks had offered their support in trying to urge city residents to vote for the referendum.

However, many Gary residents used assorted public forums to complain they were already paying as much in taxes to local government as they could afford to.

Mayor Karen Freeman-Wilson, who was been among the measure's supporters, said she was amazed at how close the vote was.

"People I have talked to say they're willing to help fund education, they just want a more specific plan put forth," she said, adding she expects there to be future attempts to gain voter approval for a levy increase.

"We shouldn't take this off the table, people just want something more specific," the mayor said.

Councilwoman LaVetta Sparks-Wade, D-6th, whose own son attends the public schools, said she might have to consider alternatives for him if the situation gets worse in the next year. "I'm going to be looking at it really hard, because I cannot sacrifice my son's education," she said.

Gary schools officials have said they currently have $75 million in debt load, and that amount will steadily increase without the tax hike.

"That problem is still there," Washington said, and some state education officials have said that without stabilized funding, the Gary school system would eventually have to be either closed or merged with that of a surrounding community.

Washington said of that possibility, "I don't take it lightly."

Washington said she hopes officials are able to find alternative situations, even though she admits Gary school students could be fit into the systems of nearby Merrillville or Hobart or the Lake Ridge Schools Corp., that already covers a part of Gary.

"We want to try to save the (school) system," Washington said.