Debt Piles Up for PA Service Providers
PA has earned $40 million in interest on frozen funds during the budget impasse, but will not pass this interest on to service providers once funding is released.
Easterseals, a national nonprofit, provides services for children with special needs and receives state financial support. However, due to the impasse, they have taken out $1.3 million in loans and may need to take out more.
“The best [interest rate] is 5% which is fantastic,”
Tim Kerrihard, CEO of Easterseals Southeast PA, noted that the interest paid on these loans is essentially wasted money.
- Easterseals has been forced to take out loans due to the budget impasse.
- The organization provides services to prepare children with special needs for kindergarten.
Author's summary: PA service providers face financial struggles due to budget impasse.