Debt Accumulates for PA Service Providers Amid Budget Impasse
Despite Pennsylvania earning $40 million in interest on frozen funds during the budget impasse, it will not pass this interest on to service providers once the funding is released.
Easterseals, a national nonprofit that prepares children with special needs for kindergarten, has been significantly affected. The organization has taken out $1.3 million in loans during the impasse 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' three Philadelphia schools, dozens of children engage in activities such as listening to music, playing in a ball pit, or receiving lessons via flashcards. The facility is designed to allow staff, including teachers, social workers, and therapists, to observe children as they play and learn.
Author's summary: PA service providers face financial strain due to budget impasse.