The immediate concerns of Delphi Corp.’s bankruptcy declaration last year revolved around its effect on the automotive industry and employees.

The company’s financial problems, however, may have a pronounced effect on governmental services, education, charitable organizations and the retail marketplace.

Delphi has paid little of the money it owes in property taxes — just $986,183 of nearly $4.2 million that was due in May. An equal amount is due when the second installment of property tax payments are due in November.

While the city of Kokomo believes its financial situation is solid, Howard County and Kokomo-Center School Corp. will turn to the state of Indiana’s Rainy Day fund for no-interest loans to cover the loss in revenue.

For the county, the amount of the loan is $390,000 and could raise to $800,000, according to Richard Miller, president of Howard County Council.

“Since we’re always at our maximum levy, we have all of our income obligated. We don’t have huge sums of cash that haven’t been dedicated or appropriated,” Miller said. “We are always at the close edge of income versus expenses.”

He noted a point earlier in the year where the auditor didn’t pay any bills until more income came in to the county’s coffers.

“That is how close the general fund is run. It’s why we are required to take out the interest-free loan,” Miller continued. “Ultimately, we hope that the court allows the back taxes to be paid.

“If not, then we will have to consider a tax hike and all of the taxpayers in Kokomo and Howard County will pick up that shortfall. We have to take it or there is a chance that we won’t be able to fund important services in Howard County.”

Kokomo-Center is dipping into the fund for nearly $1.4 million.

“Unfortunately, it’s going to have an impact on our tax rate and affect our local taxpayers,” Superintendent Thomas Little Jr. said. “That’s a concern because we know our taxpayers are strapped at this time and we are sensitive to that.”

A strong school system is important to a growing and healthy community, he said.

“It’s in our best interest that the education system moves forward and flourishes. We’re proud of the accomplishments we have made and we believe [Kokomo-Center] is a selling point for the community,” Little said. “We understand we need to keep growing, moving forward and making educational gains. We know that helps the economy and we’re dedicated to that mission.”

The superintendent noted that Kokomo-Center has been lucky in comparison to other school systems in similarly sized cities.

“Our attendance has maintained, fortunately,” he said, “because most urban school systems have declined, like Anderson, Muncie and Marion. We’ve maintained because the community is prosperous.”

Little believes Delphi’s bankruptcy affected the morale of the community.

“It has people concerned with what is our future in Kokomo. We’ve been extremely fortunate. Our community seems to move forward while others of similar makeup have struggled financially and we’ve continued to grow,” he said.

“The bankruptcy of Delphi has brought home that we are vulnerable. I believe it has affected the economy locally and our local businesses. A school system depends on local businesses to grow and prosper and that type of business is needed to bring new people to the community.”

Little’s claim that it hurt the morale seems true when you consider United Way of Howard County’s shortfall in its campaign last year.

Delphi’s bankruptcy declaration came during its annual fund raising period last year and the group missed its goal by $200,000.

Yet, the people facing the most questionable future, the Delphi employees, once again did their part, according to the head of one agency that receives funding from United Way.

“We were all anticipating that [the bankruptcy] would really hurt the campaign, but it turned out that it didn’t hurt as much as we thought,” Don Ridenour, executive director, Family Service Association of Howard County, said. “The people at Delphi were very generous considering the cloud of the bankruptcy.

“The thing you have to remember is that Delphi was in trouble for some time and it was widely known. You saw people belt tightening out of apprehension. All in all, contributions were down everywhere across the board with most fundraisers, as well as United Way. A lot of people in business, bankers will tell you people were not spending money for anything major.”

The morale, however, seems to have improved, Ridenour said.

“We had a very successful Take Back the Night and a very successful dinner auction,” he said. I think in some ways, yes, things are better. It remains to be seen how the United Way campaign goes. People seem to have been willing to share more at least with our fundraisers than in the past.

“The difference is that it has been from ordinary people. We have a hard time getting business sponsorships, but ordinary folks are getting involved and willing to help us out.”