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FOR IMMEDIATE RELEASE |
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State
Rep. Matt Smith |
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Smith legislation would limit excess spending at PHEAA
HARRISBURG, Oct. 16 – State Rep. Matt Smith, D-Allegheny, plans to introduce legislation that would require the board of directors of the Pennsylvania Higher Education Assistance Agency to approve any discretionary spending over $25,000.
“Over the last year, spending excesses at PHEAA have been brought to light, and the immediate outrage from the public was the impetus for this legislation,” Smith said. “The purpose of this organization is to help students pay for higher education, and that trust was seriously abused with expensive travel arrangements and huge bonuses for staff.
“Money that could have helped a recent high school graduate, a single parent trying to get a degree or certification, or an older adult looking to change careers was used for other purposes. We must be good stewards of public funds, and this legislation would be a step in the right direction for PHEAA.”
Under the legislation, “discretionary spending” would be defined as any spending that does not meet PHEAA’s purpose, which is to increase opportunities for citizens of the state to obtain higher education by ensuring the availability of loans through PHEAA, other lenders or educational institutions. It would not include employee base salaries or benefits packages.
Smith is also a co-sponsor of legislation (H.B. 1891) introduced by Rep. Josh Shapiro (D-Montgomery) that would limit board members on PHEAA to serving no more than 12 years, and make the agency subject to state audits and open records laws.
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CONTACT: Ruth A. Myers |