Though it has never happened in Indiana, Gov. Mitch Daniels said he has staff members examining exactly how the state would take over day-to-day operations of low-performing school districts should the need arise.

Daniels' comments came this week during a meeting with The Times' editorial board in the context of discussions about the Gary Community School Corp.

"Under federal and state law, if a school system's results are bad enough, long enough, that's the default option -- a takeover," Daniels said. "And sometime in the next few years, that question may arise, not just in Gary but in other places in the state."

As a district, Gary has been listed as failing in at least one academic category for five of the last six years. The graduation rate among male public school students in Gary is less than 40 percent, compared to 72 percent statewide.

But the most recent round of statewide testing found that 10 public schools have remained on academic probation after three years, including schools in Gary, Hammond, East Chicago and Calumet Township.

State Education Department spokesman Jason Bearce said it's a complex matter determining exactly when a state would be forced to take over a school district because state and federal laws set different standards.

But taken together, the federal No Child Left Behind law and Indiana Public Law 221 state that certain schools on academic probation based on low-performing test scores for six years are mandated for changes that include takeovers.

"It's an option that's on the table, but it's certainly not the preferred option," Bearce said.

And it's not completely clear who would take over an underperforming school -- the governor's office or the state education superintendent, Bearce said.

"It's somewhat nebulous at this point," Bearce said. "It's not something that's easy to figure out, especially in Indiana, which is a local control state."

Nellie Moore, president of the Gary School Board, said the governor's efforts might be better spent preparing school districts for how to meet the unfunded mandates imposed by the state and federal laws. She does not believe a state takeover is imminent.