PHEAA The Auditor General has to order a complete forensic audit of the Pennsylvania Higher Education Assistance Agency (PHEAA). In September of 2007 PHEAA gave their top 23 executives $1.1 million in bonuses. PHEAA has paid out more than $7.5 million in bonuses since July 1, 2004. We need to hold the top executives and board members, (16 of whom are State Senators and Representatives) accountable for the waste and squandering of taxpayer dollars that should have been used for student grants.
DCED All programs within the Department of Community and Economic Development (DCED) need to be audited. It also needs to be determined if the Opportunity Grant Program (OGP) is constitutional. Article VIII Section 8 states “The credit of the Commonwealth shall not be pledged or loaned to any individual, company, corporation or association nor shall the Commonwealth become a joint owner or stockholder in any company, corporation or association.” The DCED has not done enough to monitor the state grants given out to businesses for the purpose of economic development. Of the $26.2 million in repayments and penalties levied only 13% has been collected. The DCED Opportunity Grant Program (OGP) monies are given to businesses to retain and create jobs. During the years 2000 to 2005, $215 million was given to 724 businesses . The problem is that the Auditor’s report doesn’t have a breakout of the number of jobs created as opposed to those retained, and the numbers that are reported are from data that is supplied by the businesses, without being verified by the DCED. Penalties are assessed to businesses that don’t meet grant criteria so it is imperative that the data that they supply is verified. Considering that Pennsylvania’s unemployment rate has increased by 1.5% the DCED OGP needs an audit with a full accounting of grants issued. It also needs to be determined if our tax dollars are actually working to benefit our communities and increasing employment or if this department is just another bureaucracy that costs us more than we gain from its intended purpose.
General Assembly The Auditor Generals office needs to be given oversight of the State Legislatures financial accounts. Currently so called audits of the General Assembly are directed by a body of legislators and others appointed by the leadership of the House and Senate. The audits are unclear and non specific as to how funds were expended, tens of millions of dollars are reported as “disbursed” with no description as to where the money went. Our Senate and House Leaders must be held accountable for how they spend our money. As your State Senator I would ask that the Governor call for an audit and that the Attorney General issue an opinion that there is no violation of the State Constitution to have the Auditor General audit the Legislatures financial accounts. If that doesn’t happen I would petition the court to make a ruling on Article VIII Section 10. If these measures fail we would need to have a constitutional amendment.
