INDIANAPOLIS – The Indiana state budget committee Monday approved emergency loans from its rainy day fund for the Kokomo-Center and Northwestern school corporations to offset delinquent taxes owed by Chrysler Group.
State Sen. Brandt Hershman, R-Wheatfield, said the board of finance approved five-year loans at 2 percent interest for both corporations. Kokomo-Center will receive nearly $1.5 million, while Northwestern will receive about $1.6 million.
Kokomo Superintendent Jeff Hauswald said Chrysler is paying the taxes owed over a six-year period, and as those payments are received by the Howard County auditor’s office, they will go straight to the state to repay the schools’ loans.
He said with Chrysler paying current and back taxes, the corporation should not have to ask for another loan next year.
Hauswald said Chrysler owes the corporation approximately $2.3 million.
Northwestern Superintendent Ryan Snoddy said his corporation is owed about $2.3 million.
He said both corporations should receive their loans in the next three days to a week.
He said the money “makes it a little easier to sleep at night,” because it allows the corporations to meet their financial obligations for 2010.