Two state agencies voiced their own thoughts on Thursday about the New Castle Community School Board's decision last week to give a vacant school building to a New Castle church.

In an email, Ross McMullin, communications specialist for the Indiana Department of Education, said someone "could be on sound legal footing" to challenge the property transfer.

And Bruce Hartman, state examiner for the Indiana State Board of Accounts, said the transfer will be something the SBOA considers when it audits the school in the future.

In the past days, the school board's decision drew criticism from New Castle Mayor Jim Small and State Rep. Tom Saunders, R-Lewisville. Both officials disagreed with a clause the school corporation put in the contract for the sale that said the property could never be used in the future for a school that competes with NCCSC for funding.

The purpose of the clause is to keep private schools and charter schools from using the building and taking students and funding from NCCSC.

However, Indiana has a law that says a school's governing body "may not make a covenant that prohibits the sale of real property to another educational institution."

Last week, Greg Crider, attorney for NCCSC, said the school corporation isn't prohibiting the sale but the use of the building on 14th Street that once housed the high school. Crider said the school corporation felt that it had an obligation to its students and staff to try to protect its funding level.

In addition, NCCSC consulted the Indiana School Board Association about the contract before the vote last week, Crider said.

"I think we have a very defensible interpretation," he added.

Crider also noted that the building was appraised at a negative value for the corporation.

The Courier-Times emailed questions to the Indiana State Board of Accounts and the Indiana Department of Education about the sale last week. After days with no answer, both agencies responded on Thursday morning.

Hartman said the SBOA had been contacted by "concerned individuals" about the transaction. The SBOA advised the individuals to contact the school attorney and to ask him under what statutory authority did the school board make the agreement.

"Besides that, we are not currently conducting any special review," Hartman said.

McMullin said the IDOE isn't taking any action on the issue but is continuing to monitor the situation.

"If someone wishes to challenge the property transfer in the courts, they're well within their rights to do so and could be on sound legal footing," McMullin added.
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