Newly appointed Department of Local Government Finance Commissioner Timothy Rushenberg gave Hammond taxpayers an early Christmas present.
Commissioner Rushenberg denied the School City of Hammond's $165 million project to build a new high school in Hammond. The project included building a new high school, closing Hammond High, and converting Gavit into strictly a middle school.
School city officials had said the project would have little impact on property tax bills. However, what they failed to mention was the financing would be backloaded. Practically no principal would be paid in the early years of the debt, with a huge increase occurring during the last ten years of the bond. Apparently, Commissioner Rushenberg saw through the smoke and mirrors and was not swayed.
In a news release Commissioner Rushenberg expressed concerns about the cost of the project and the impact it would have not only on Hammond taxpayers but other taxing units in Lake County that are under the circuit breaker. That impact was one of his primary reasons for nixing the project.
Superintendent Walter Watkins is not ready to give up on the project. School leaders and the school district's legal and bond consultants will review the project before deciding on their next course of action. They could scrap the project altogether. They could scale back the project, or they could continue to pursue the current building plan.
However, under the new property tax legislation, a referendum would now be required.