The Herald, Sharon, PA Published Wednesday, May 7, 2003

District gets OK for loan to pay bill

Sharon school directors may borrow money to pay off a health-care bill incurred by the Western Pennsylvania Health Care Consortium.

District officials petitioned Mercer County Common Pleas Court to borrow the $750,000 they need to pay bills to the consortium, which pays for the health care of its 12 member schools' employees.

After an April 9 hearing before President Judge Francis J. Fornelli, district officials were told to have the district's finances reviewed by Keystone Research Inc. of Greenville to prove the district could not afford to pay the debt without a loan.

It is illegal for a school district to borrow money for unfunded debt without court permission.

The review by Keystone Research said the shortfall at the consortium was unexpected, so no money was budgeted for the $680,000 the district owes. The district does not have enough money to cover its obligation.

The petition was approved Monday by Fornelli.

The district intends to take out the loan for five years. Officials asked to borrow more than their share, in case the consortium asks for more money.

Farrell and Reynolds area school districts also petitioned the court and were given permission to borrow money to cover their share of the consortium's $4.5 million debt.



Back to TOP // Herald Local news // Local this day's headlines // Herald Home page



Questions/comments: online@sharonherald.com

Copyright ©2003 The Sharon Herald Co. All rights reserved.
Reproduction or retransmission in any form is prohibited without our permission.

030401