Kokomo-Center Schools to pursue emergency loan

Posted: Saturday, August 15, 2009 12:00 am | Updated: 5:08 pm, Tue Sep 15, 2009.

Peter Adelsen Staff Writer | 0 comments

A request to look into a possible state loan to help heal a budget shortfall was offered to the Kokomo-Center Township Consolidated School Corporation board of school trustees Monday at the Administrative Service Center.

Superintendent Chris Himsel and Director of Business Affairs Eric Rody requested permission to pursue a state emergency loan since Chrysler Corp. has not been keeping up with its property taxes. The school district has been shorted some $2 million of property tax revenue, which is about 12-to-15 percent of the overall property tax revenue. The loan requested would be similar to the one the district received after the 2005 bankruptcy of Delphi Corp., where the loan provision lasted for 10 years and was interest free, Rody said.

"As we had back in 2005 with the Delphi bankruptcy, there is a similar provision for a state loan to basically get us by until all of these issues are settled in the bankruptcy," Rody said.

Himsel said that Kokomo Schools, Northwestern School Corp., the city, county and state would pursue the loan together, not separately.

Rody said that they have no solid information on what the loan would be and that it may not be interest free, like the loan was in the Delphi situation. The loan would be decided by the state. The school board approved the permission to explore the loan.

In other news

The board approved the purchase of six 66-passenger diesel school buses and for 10 additional camera systems. The approved bid was by Midwest Transit Equipment, Inc. for $407,854.

The board approved a second temporary right of way for Wallace Elementary School on Jefferson Street for the Dixon Road project. The city will maintain access to the building during the duration of the project. The cost of the project will be $1,630.

Also approved was to apply and accept the Non-English Speaking Program Grant. The grant is funded and administered by the Indiana Department of Education Office of English Language Learning & Migrant Education. The grant in the amount of $15,330.79 would be used for professional equipment, instructional materials, software and paraprofessional support.

The board approved the temporary relocation of KASEC to Central Middle School.

The board congratulated Ashley DeWitt, a 2009 Kokomo High School graduate, for earning top 10 finishes in shot put and discus at the 2009 IHSAA Girls Track and Field State Championships in Bloomington. She received a medal from the board. This fall she will be attending Tiffin University in Ohio with a full scholarship.

http://kokomoperspective.com/news/article_52638afa-5ce0-5cb1-b3e4-accd04c6515c.html