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 pass this interest on to service providers once the funding is released.
Easterseals, a national nonprofit providing services for children with special needs, has been forced to take 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 kids engage in activities such as listening to music, playing in a ball pit, or receiving lessons via flashcards, all under the supervision of teachers, social workers, and therapists.
- Easterseals provides services to prepare children with special needs for kindergarten.
- The organization receives financial support from the state but has been impacted by the budget impasse.
Author's summary: PA service providers face financial strain due to budget impasse.