School City of Hammond's corrective action plan has officially been approved by the state. The Distressed Unit Appeal Board (DUAB) sent written notice of the acceptance last month, according to information posted on the school corporation's website.
The cost-cutting measures have already been taking place. Those include the closure of three elementary schools and the elimination of 19 teaching positions, multiple administrative positions, 40 recess aide positions and 25 custodian positions. All of that is designed to save the district almost $30 million a year.
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."
School City of Hammond has struggled to maintain a balanced budget. It points to staff raises in 2021 and 2022, skyrocketing health care costs, a drop in enrollment and the non-renewal of its operating referendum last year.
The school corporation says DUAB first expressed concern about the district's financial stability last August. It then placed the district on corrective action plan status, following November's referendum failure. School officials submitted an initial version in February, but it wasn't finalized until July. The district blames the delay, in part, on lengthy negotiations on the teacher contract, which continued until May.
As part of the corrective action plan, 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.
