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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 2019 - 2020 Regular Session


Posted: January 1, 2019 12:39 PM
From: Representative William C. Kortz, II
To: All House members
Subject: Prohibiting School Districts from Disbursing Loans
In 2017, Auditor General Eugene A. DePasquale released a performance audit of Duquesne City School District in Allegheny County. Amidst various negative findings, one of the most egregious discoveries was the distribution of 22 interest-free loans, totaling $41,250, to four district employees over a four-year period. The personal loans were distributed 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.

As there does not currently exist a law to address this issue, I plan to introduce legislation prohibiting school districts from disbursing personal loans to their district employees. 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 me in ensuring that this Commonwealth’s children benefit from responsible school district spending by co-sponsoring this important legislation.

Introduced as HB500