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FOR IMMEDIATE RELEASE
March 21, 2007
CONTACT:
Lee Derr
717-787-6538
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Senators Orie and Rafferty Introduce Legislation To Tighten PHEAA Board Practices

(Harrisburg) – State Senator Jane Orie (R-Allegheny) and John Rafferty (R-Montgomery) today unveiled their legislative plan to restructure the current appointment, reporting, and accounting procedures of the Pennsylvania Higher Education Assistance Agency (PHEAA) Board.

This legislation will require PHEAA to contract with a third party accounting firm to conduct an annual forensic audit of the PHEAA Board which must be submitted to the House and Senate Finance Committees by April 1 of each year.  PHEAA would also be required on that date to submit a report to the Senate and House Finance Committees which contains all expenses and revenues associated with the operations of the PHEAA Board.

This legislation also requires that all appointees to the PHEAA Board selected by the House and the Senate be approved by a majority vote in their respective chambers.  It would prohibit standing legislators from serving more than 2 consecutive terms on the PHEAA Board.

"Our goal is to bring greater accountability and fiscal responsibility to PHEAA and ensure that funds are not spent in a wasteful or unnecessary manner," Rafferty said. "The recent stories of financial mismanagement and over-the top-spending have made it necessary for us to take a closer look at the Agency's fiscal bottom line."

Orie added that the legislation will ensure that PHEAA revenue is used for the purpose it was intended – to provide low-interest grants and loans to students.

"Lavish trips, tuxedos, and spa visits are not defensible expenses and should be stopped," Orie said.  "This legislation will ensure that money is spent prudently and put PHEAA on notice that it has to be accountable to the Legislature and the citizens of Pennsylvania."