Gary schools win big in proposed stimulus package

If the bill makes it through the Senate and becomes law, the Gary Community School Corp. could get about $75 million in additional federal money over the next two years to be used on things like technology upgrades, construction and teacher training.

Gov. Mitch Daniels mentioned the percentage increase during a news conference Thursday to discuss the stimulus package, which he said will hand Indiana about $5 billion overall to spend on construction, tax reduction and other pump primers for the Indiana economy.

About $1.5 billion will be earmarked specifically for schools across the state, Daniels said, and will be distributed largely based on the number of students who qualify for free or reduced-cost lunches because they live near or below the poverty level.

The governor was quick to point out the formula could change significantly in the Senate.

But on average, Indiana school districts would see a 10 percent state funding increase if the House-passed version of the stimulus bill becomes law, Daniels said. Because so many students in Gary live in poverty, the jump would be much higher.

The state's share of tuition support to the Gary public schools will be $109 million this year, according to Ryan Kitchell, director of the Office of Management and Budget.

Under the current House plan, the district would get $44 million in 2009 for capital improvements and operating expenses, Kitchell said. Gary public schools would get $31 million in 2010 for operating costs, and then the federal funding would stop.

Charter schools also will qualify for stimulus money under the same criteria.

State finance officials did not have a breakdown of how much money other school districts would get under the House plan. But state Budget Director Chris Ruhl said other school districts that qualify for heavy lunch subsidies, like East Chicago, should expect similarly high increases.

The most affluent districts in the state will see just a 2 percent state funding increase under the House stimulus plan, Daniels said.

Daniels urged schools across the state to keep in mind their shares will run out after two years.

"If we keep state funding where it is, increases will average 10 percent, with a high of 40 percent in Gary. Forty percent, for two years, and then evaporate," the governor said.

"It's good news, because (schools) will be financially stronger than they could have ever imagined," Daniels said.

"But it won't be good news if they simply spend all that money and commit to new levels of spending that will be completely unsustainable two years from now."

Gary School Board President Nellie Moore said the influx of funds would be a huge boost to the school district's plan to reconfigure several facilities in the city as "themed academies" serving students in grades 7 through 12.

"We will need to service the schools with new equipment, technology and everything else," Moore said. "We need to support our students and staff academically."

"I am ready to stimulate the economy," she said.

Under the House plan, funds would also be set aside for mass transit, and Daniels said projects like bus service in Lake County or the South Shore commuter rail extension might qualify.

But he said so-called "shovel-ready" projects will get first crack, because they will put people to work quickly.

"Jobs and speed ought to be the touchstone, and if they have something that meets those tests, we'll sure look at them," the governor said.

Many of the transit dollars would be distributed through local agencies like the Northwestern Indiana Regional Planning Commission

Daniels even said the City of Gary might qualify for some federal stimulus money to help close its yawning budget hole.

"All things are possible. I can only go back to saying this cannot be a giant cookie jar, and people's long-cherished wish lists," he said. "We want to make sure every dollar goes to strengthening the Indiana economy."