Two Mercer County school districts got approval Wednesday to borrow the money necessary to pay their health care bills but Mercer County Common Pleas Court Judge Francis J. Fornelli wants more proof that a third district needs to borrow the money.

Fornelli granted approval for the Farrell Area and Reynolds Area school districts to borrow $750,000 and $796,500, respectively. The schools need the money to pay the Western Pennsylvania Healthcare Consortium by June 30.

The districts must submit their loan proposals from the bank to Fornelli for final approval.

Schools must petition the court for permission to borrow money for unfunded debt, and Fornelli said school officials must prove the debt was unforeseen and the health and welfare of the children in the districts would be in jeopardy if the money is not borrowed.

Fornelli accepted the testimony of Mike Stabile, Farrell business manager, and Mary Ammann, Reynolds business manager -- both of whom said there was no other place in the budget to get the money. Both also said that without the borrowed money they would not have money to pay salaries and other essential bills.

However, Fornelli is requiring the Sharon City School District to do some more work to prove they need to borrow $750,000.

Fornelli said the district will pay Keystone Research Inc., Greenville, to review their 2002-03 budget and advise the court as to whether or not it is necessary for the district to borrow the money.

Business Manager James Wolf testified that the district could be cut off from health care benefits if the bill isn't paid, and solicitor Mark Longietti said the situation is dire.

Wolf also testified that school directors passed a budget with a 10 percent health care increase but learned before the final budget that the increase was going to be 13 percent. The extra 3 percent was taken from a fringe benefits account, Wolf said.

Wolf also testified that the district has money in its fund balance, cafeteria fund and other accounts that could possibly be used to pay the bill.

"Let's remove the drama and the hysteria," Fornelli said. He said a certified public accountant, a former superintendent and Richard Miller of Keystone Research would look at Sharon's budget and submit a report to the court within two weeks.

Fornelli also said it's possible all of the districts will need to petition the court again if the health care consortium decides it needs more money from its member districts. In that event, Fornelli said only a short hearing should be needed because he's now familiar with the situation.

Seven Mercer County school districts owe money to the health care consortium in order to pay a $4.6 million debt. The consortium is made up of a total of 12 districts and pays health care benefits for its member employees.

Wolf said the debt was incurred because there were a large number of claims costing or exceeding $120,000. He said UPMC Health System has also fronted money for claims, and the districts owe UPMC. He said there is the possibility that UPMC will cut the districts off if the bill isn't paid.