The Herald, Sharon, PA Published Tuesday, March 25, 2003


Boards face consortium bills, investigation is considered

By Kristen Garrett
and Joe Pinchot

Herald Staff Writers

Two local schools boards grappled Monday with how to pay an unexpected bill from the Western Pennsylvania Schools Health Care Consortium. One board wants an investigation into the consortium's finances.

West Middlesex Area School District will pay their $247,000 bill from their fund balance, a move that will deplete the fund to $185,000, board President Thomas Hubert said.

Hubert also made a motion -- which was unanimously accepted by the board -- to allow the board's health care representatives to meet with Keystone Research Inc., Greenville, to look into the possibility of using the firm to do a "complete forensic accounting of the Western Pennsylvania Schools Health Care Consortium to gather information of the circumstances that led up to the need for this district to have to be assessed $250,000 more than was anticipated by the consortium as the beginning of the fiscal year."

Hubert said he would like to invite the other member school districts in Mercer County to join the endeavor with Keystone Research.

Superintendent Al Jones said Keystone sent a letter to the district in regards to the consortium. Jones added that he and Business Manager Margaret Burgoon have been researching alternative health care providers.

Board solicitor John Reed said Keystone Research is a reputable group that has done such work as investigating the financial situation in the Reynolds School District and working on behalf of the Farrell Area School District during the WHEAT movement.

Farrell Area School Board will ask a judge if it can borrow money to pay for the unexpected health care bill.

Solicitor James Nevant II said Monday he hopes to file the request this week to borrow up to $900,000.

The district has been billed $519,000 by the consortium, which provides employee health care to 12 districts, including Farrell, West Middlesex and five others in Mercer County.

The consortium is $4 million in debt and billing its members to make up the shortfall. The consortium said it needs the money by June 30.

Farrell Superintendent Richard R. Rubano Jr. said the district plans to ask the court for more money than it needs in case the consortium bills it for more.

"We're not saying we're going to use it," Rubano said Monday, following the board's decision.

The district needs court approval because the loan would cover unsecured debt, which is debt that the district has not already made provisions for, Nevant said.

Sharon City School directors voted last week to petition the court to borrow $900,000 for the same reason.

The court is not required to set a hearing within a specific time frame, but Nevant said he hopes it will act soon.

Nevant said he will argue that to not borrow the money will "negatively impact the health, welfare, safety and education" of students.

Rubano said the district is limiting spending to anything essential and that would affect students.



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