Region school officials operating their districts on borrowed money say they are looking forward to relief later this week from the Lake County treasurer.
Patty Shell, Lake County's chief deputy treasurer, said the department received $149 million in late June and early July from the state in the form of homestead and property tax replacement credits. That money soon is to be issued to the more than 50 Lake County taxing units, including schools.
That is good news to Hilda Damianick, an assistant to the Merrillville superintendent, whose district has been operating on borrowed money.
Damianick said the district likely will use any money it receives to pay down debt. She said the district owes about $22.4 million, $15 million of which was used in the general fund for operating expenses, all borrowed money.
Schools -- like all local government agencies within Lake County -- have been forced to borrow millions of dollars in recent years because of turmoil surrounding reform of the state's property tax system.
Previously, tax bills with regular increases to compensate for inflation were mailed to the county's property owners and paid on a regular basis. But four years ago, tax reassessment resulted in huge tax increases, a taxpayer revolt, litigation, and more changes disrupting the billing schedule and payment deadlines. Loans helped government bridge the gap in delayed payments.
Shell said she expects to call the different taxing units sometime this week to alert them to pick up their checks.
"I'm working on what each taxing unit will get now," Shell said last week. "All of the money will be released at the same time. Everybody is anxious to get the money. It should be a pretty sizeable check."
Tom Dykiel, Lake Central schools director of finance, said his district also will use the money to pay back loans. He said his district borrowed $24 million this year, nearly three times the amount he would have borrowed in a normal year.
East Chicago school officials, who have struggled with a tight budget and were forced to lay off 31 teachers, were not aware any money was on its way last week.
East Chicago schools Treasurer Frank Ramirez said his district borrowed nearly $17 million at the beginning of January.
"Our strategy right now is to roll over our debt. It was due June 30, and we've got an extra six months," he said.
