The private company managing the Gary Community School Corp. has received two more state performance incentives worth $200,000 for work in reducing and managing the district’s debt that caused the state to take it over in 2017.

The state Distressed Unit Appeal Board, which oversees the district, approved the incentives unanimously in a Thursday virtual meeting.

Both the incentives were listed in year three of a contract for Florida-based MGT Consulting, issued in 2017. The contract was renewed for two more years earlier this year.

The incentives were awarded based on the successful reduction of accrued liabilities and for a 2018 debt reduction plan that led to a decline in the annual deficit from $22 million to $6 million.

MGT officials said the figure could drop more when new data is released in February.

“They have continued to implement various incentives,” said Courtney Schaafsma, executive director of the DUAB.

Nonvoting board member State Rep. Vernon Smith, D-Gary, spoke at length regarding concerns about a lack of academic improvement.

“I’m glad they’re getting performance bonuses for the fiscal part, but we have to work on the academic part,” said Smith.

Also, with the board’s approval, the district will seek a $4.49 million tax anticipation warrant to allow it to begin to give teachers a 5.3% raise in January.

Chief financial officer Nicole Wolverton estimated the interest to be at about $44,000, based on a sale last year.

The warrant will be repaid when the district receives its June tax draw that’s bolstered by the November passage of a $72.1 million eight-year referendum.

Carole Carlson is a freelance reporter for the Post-Tribune.