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Trustee alleges illegal transfers from operations to cover Title I; attorney urges interfund loan policy
Summary
A trustee accused the district of moving $4,471,698.73 from operations to cover Title I costs and said no award letters were shown; Superintendent Dr. Steven Bornay and board counsel disputed the legal characterization and Attorney Harris recommended a policy and formal interfund‑loan approvals to provide guardrails.
A board member at the School City of East Chicago meeting accused the district’s finance office of moving operations dollars to cover Title I costs and called the practice illegal, prompting public comment and a recommendation from the board attorney for clearer interfund borrowing rules.
During the board Q&A after Superintendent Dr. Steven Bornay’s grant update, a trustee asserted that the CFO, Ms. Simmons, “started taking monies for $4,471,698.73 out of operations funds, which is illegal.” The trustee further said the board had not received award letters showing final state approval and raised alarm about borrowing against anticipated federal reimbursements.
Board attorney (Attorney…
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