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Auditor General says Cash-poor school districts could be headed for more trouble

Written by Radio Pennsylvania | Feb 27, 2016 9:49 AM
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Photo by AP Photo/Matt Rourke

(Harrisburg) -- Pennsylvania's Auditor General is warning of more problems ahead for school districts as the budget impasse continues. 

In testimony before the House Appropriations Committee this week, Auditor General Eugene DePasquale said that districts borrowed an estimated one billion-dollars before Governor Tom Wolf released partial funding in December.

Now that money is running out, and DePasquale says  districts who once again turn to the banks may have a problem.

"Banks today cannot guarantee that there's going to be a state budget.  So school districts that have depleted their fund balances and already had one loan, I believe now the second go-around, their interest rate will either be significantly higher or they may not get the loan," DePasquale said.

An updated report is due in April. As for his own office, Depasquale says they're completing audits at a faster rate than at any three-year period in the agency's recent history. 

 

 

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