ary Community School Corp. employees didn't receive their paychecks Friday because of a lack of funds to cover the payroll.
Employees were told in an April 29 letter the checks should arrive on Monday, May 16.
"The administration finds it necessary to change the paycheck distribution date to insure that funds are available to cover the pay period," the letter stated.
"The administration appreciates your understanding regarding this matter as the district is experiencing a cash flow and budget deficit issues."
The district is mired in about a $75 million budget crisis because of a declining enrollment and overstaffing, according to Jack Martin, its state-appointed financial adviser. He's seeking a loan for the district for capital project repairs from the Distressed Unit Appeals Board in a meeting scheduled for May 20 in Indianapolis. The DUAB is overseeing the district's finances.
School Board President Antuwan Clemons, who heads the board's budget/finance committee, said the missed pay period was due to cash flow problems. "We didn't want to bounce any checks," he said. The checks should be distributed Monday, he said.
The letter told employees the administration and Martin were working hard to avoid a reduction in force this year. However, on Tuesday, the school board laid off 13 employees, including eight secretaries, three information technology department employees, a public relations administrator and a business department assistant.
Clemons said more layoffs are coming. "We have to make sure we live within the means of our income," he said. "Mr. Martin is making some serious recommendations."
By state law, the school board has from May 1 to July 1 to notify teachers of a reduction in force, said GlenEva Dunham, president of the Gary Teachers Union.
The delayed payday impacted all school district employees. Employees typically receive their checks at their respective schools on Friday mornings, said Dunham. The school district hasn't done direct deposit in about two years because of its tight financial constraints.
"We're trying to work with them as much as we can," said Dunham.
Since school began in August, 52 teachers have retired or left the district, Dunham said. The district is planning a party for 104 districtwide retirees later this month at the Gary Area Career Center.
Dunham said the district has 25 long-term assignment substitute teachers.
State Rep. Charlie Brown, a Gary Democrat who's been critical of the makeup of the school board, said Friday he understands the concerns of employees.
"That's just another blemish on what is happening in the Gary Community Schools. Hopefully, we can turn the whole thing around."