The Gary Community School Corporation, (GSCS) reduced their budgeted deficit from 22 million to 11 million bringing the district one step closer to removing the financially distressed status the district is currently under. To remove the financially distressed status completely, the deficit must be reduced to zero and the district must operate with a balanced budget for two years. At that point, GCSC will be eligible for state review to regain local control.
The GCSC debt does not need to be canceled out, just the deficit. The following graph may help explain the difference between the two.