Debt Accumulates for PA Service Providers Amid Budget Impasse
PA has earned $40 million in interest on frozen funds during the budget impasse, but will not distribute this interest to service providers once funding is released.
Easterseals, a national nonprofit, provides services for children with special needs and relies on state financial support. Due to the impasse, Easterseals has taken out $1.3 million in loans and may need to take out more.
“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.”
At one of Easterseals' Philadelphia schools, dozens of children engaged in activities such as listening to music, playing in a ball pit, or receiving lessons with flashcards, all under the supervision of teachers, social workers, and therapists.
Author's summary: PA service providers face financial struggles due to budget impasse.