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Pennsylvania House of Representatives
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House Co-Sponsorship Memoranda

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House of Representatives
Session of 2017 - 2018 Regular Session


Posted: January 24, 2018 11:32 AM
From: Representative William C. Kortz, II and Rep. Harold A. English
To: All House members
Subject: Prohibiting Public School Districts from Disbursing Loans
Auditor General Eugene A. DePasquale recently released a performance audit of Duquesne City School District in Allegheny County analyzing the district’s application of best practices and compliance with state regulations, laws, contracts, and administrative procedures. Amidst various negative findings, one of the most egregious discoveries was the distribution of 22 interest-free loans over a four-year period to four district employees.

The report found that a total of $41,250 in personal loans was distributed to the district superintendent, a principal, a clerk, and an administrative staff member. These loans were disbursed from the district’s general fund, hidden from public view, and given without authorization from the Receiver, Chief Recovery Officer, or the Board of School Directors. Additionally troubling is the absence of legislation prohibiting school districts from distributing personal loans to their employees.

In the near future, we plan to introduce legislation amending the Public School Code of 1949, prohibiting school districts from disbursing personal loans to any entity, including district employees, non-employees, businesses, and organizations. Each school districts’ general fund is purposed to finance educational instruction and support to enhance learning environments for Pennsylvania’s students, not provide personal loans to employees.

Please join us in co-sponsoring this important legislation.

Introduced as HB2168