FOR IMMEDIATE RELEASE
April 18, 2007
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Rafferty Requests the Senate Policy Committee to Hold Hearings on PHEAA Expenses

Harrisburg – Outraged by the excessive and wasteful spending by the Pennsylvania Higher Education Assistance Agency (PHEAA), State Senator John Rafferty today called on the Pennsylvania Senate Republican Policy Committee to conduct public hearings in May on the policies regarding expenditures of PHEAA employees and board members; and review legislation to provide better oversight.  Over the last few years, lavish expenses for board members and employees for trips, spas, golf, alcohol and even falconry lessons were approved.

Senator Rafferty has introduced legislation which will require PHEAA to contract with a third party accounting firm to conduct an annual forensic audit of the PHEAA Board which must be submitted to the House and Senate Finance Committees by April 1 of each year.  PHEAA would also be required on that date to submit a report to the Senate and House Finance Committees which contains all expenses and revenues associated with the operations of the PHEAA Board.

This legislation also requires that all appointees to the PHEAA Board selected by the House and the Senate be approved by a majority vote in their respective chambers.  It would prohibit standing legislators from serving more than 2 consecutive terms on the PHEAA Board.

"Our goal is to bring greater accountability and fiscal responsibility to PHEAA and ensure that funds are not spent in a wasteful or unnecessary manner," Rafferty said. "The recent stories of financial mismanagement and over-the top-spending have made it necessary for us to take a closer look at the Agency's fiscal bottom line." 

Contact:

Alex Charlton
610-831-8831