Debt Accumulates for PA Service Providers Amid Budget Impasse
Despite Pennsylvania generating $40 million in interest from frozen funds during the budget impasse, the state will not distribute this interest to service providers once the funding is released.
Easterseals, a national nonprofit organization, provides services to prepare children with special needs for kindergarten and relies on state financial support. However, due to the impasse, Easterseals has been forced to take out $1.3 million in loans and may need to secure additional loans.
“The best [interest rate] is 5% which is fantastic,” said Tim Kerrihard, CEO of Easterseals Southeast PA. “So that's a lot of money that just effectively is wasted.”
In September, Spotlight PA visited one of Easterseals' three Philadelphia schools, where dozens of children engaged in activities such as listening to music, playing in a ball pit, or receiving lessons with flashcards. The facility is designed to allow Easterseals staff, including teachers, social workers, and therapists, to observe children as they play and learn.
Author's summary: PA service providers face debt due to budget impasse.
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