PORTAGE | School Board members unanimously approved endorsing a plan by member Tom Pappas that could provide perpetual funding for education, health and public works projects through the interest generated from the county's sale of the Porter Health System.
Under Pappas' "Porter County Plan," which he will present at tonight's Porter County Council meeting, and like other plans before it, none of the actual revenue generated from the hospital's sale would be spent. Instead, the interest generated from the $140 million sale would be used to fund education, health, safety and other public works projects.
With the Portage Township Schools facing a $300,000 deficit in the coming year and a $1.2 million shortfall after that, Pappas said the money could come in handy.
"Every meeting we talk about the financial problems we are facing. I just thought this is one way to overcome some of those," said Pappas, who is running for re-election against challenger Deb Ekdahl for his at-large seat. "This is the only (plan) that really mentions education."
The Portage School Board previously endorsed a plan created by Porter County Treasurer Jim Murphy, who is running for a seat on the County Board of Commissioners, that would have provided units of government funding for loans issued in lieu of property tax draws arriving on time.
While Pappas' plan would do much of the same, providing for the cost of tax anticipation warrants in 2008 and 2009, it would create a perpetual fund beginning in 2010, in which the interest would be apportioned among all units of government for education, health, public works and safety issues.
Pappas said the plan would help school systems around Porter County to continue providing a quality education, despite state cutbacks.
"If the schools go downhill, the community goes downhill. That's the way I look at it," Pappas said.
School Board President Terry Hufford said there are a lot of plans out there for the investment of proceeds from the hospital's sale, and the board should look at each of them and how they might benefit education.
