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GARY, Ind. (AP) — Students in a cash-strapped northwestern Indiana school district will get new school buses under an agreement that also saves the district more than $1 million a year.

The (Northwest Indiana) Times reports the Indiana Distressed Unit Appeals Board in Indianapolis agreed Monday with the recommendation of Gary Community School Corp.’s emergency manager to retain Illinois Central School Bus as the district’s transportation provider.

Under the five-year deal, the district will spend about $3.4 million per year on student bus transportation. The bus company also has agreed to replace its fleet with new buses and contribute $75,000 a year to support programs in the Gary school district.

Leonard Moody, the district’s chief financial officer, said Gary was able to get the terms because the district is paying its bills on time.


Information from: The Times,