School City of East Chicago finance committee to seek state approval for roughly $646,000 in salary-related appropriations

Erin, presenter for the School City of East Chicago finance meeting, told the committee that changes to the district’s salary schedule approved late last year require an amendment to the currently adopted 2026 budget because the original appropriation did not include retroactive pay or the higher pay levels now in effect. "The important line here is salaries," Erin said during the presentation, outlining how payroll projections have shifted.

Erin said the district originally budgeted about $18 million for salaries for 2026 but is now projecting roughly $18.9 million in salary spending; with the new schedule the projection rises toward $19.5 million. To cover retroactive payments and the remainder of the school year at the new rates, the presenter said the district must request state authorization to appropriate approximately $646,000. "You already have the cash for it," Erin added, noting the projection of a year‑end fund balance of $12,631,353 on Dec. 31, 2026.

Why it matters: state law and the state accounting rules require districts to have formal authorization to spend amounts not included in an adopted budget. Erin explained the procedural steps: the district must publish a public notice (newspaper), allow about 15 days for comment and then pass a resolution at a formal meeting authorizing the additional appropriation.

Committee members and public commenters pressed on timing and affordability. One attendee asked whether the retroactive pay covered the period from the November approval of the schedule through the present; Erin confirmed retro amounts cover that window and that going forward employees will be paid at the new schedule. The presenter and committee emphasized that, while the near‑term cash position is sufficient, longer‑term sustainability depends on forthcoming tax draws and legislative developments. "If things maintain at the current pace, your 26–27 year shouldn't be a problem," Erin said, while warning that the 2026 tax draw this summer will make the outlook clearer.

Details in the packet show the revised salary schedule included 17 employees and a total increase listed at $254,807, with retroactive pay accounting for about $230,000 of that total. Committee members said they will work with the superintendent and finance staff to review stipend lines and other carryover accounts to determine whether some payments can be processed from alternate accounts before submitting a formal additional‑appropriation request.

Next steps: Erin said the district can file the appropriation request at any time but that the public‑notice and hearing schedule provides flexibility. The finance committee scheduled its next meeting for May 21 at 6:00 p.m. in the administration building, where members expect to review an updated salary schedule and supplemental appropriation proposal before the item moves to the full board.