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FOR IMMEDIATE RELEASE
November 1, 2007
CONTACT:
Brenda Pera
717-787-6538
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Orie Announces Legislation to Improve Monitoring, Accountability of DCED Grants and Loans

Requires accurate job creation numbers, public "success and failure" reports.

Harrisburg – State Sen. Jane Orie (R-40) today announced legislation to improve accountability, monitoring, and reporting of business grant and loan programs administered by the state Department of Community and Economic Development. 

The proposals are based on some of the recommendations of a recent special performance audit of the Opportunity Grant Program performed by the state Auditor General. The audit found uncorroborated job creation/retention numbers and poor follow-up monitoring by DCED.  

"While grants and loans can be useful in attracting and keeping businesses in Pennsylvania, that money comes from the taxpayers and they deserve a full accounting of how the money is being spent, and whether or not companies are creating the jobs they said they would," said Orie. "My legislation will improve the performance measures used to judge success, and make 'success and failure' statistics available to the public and the General Assembly."  

Senator Orie's legislation will require that DCED improve its monitoring procedures for job creation and job retention by:

• Receiving annual reports starting within 12 months of receiving a grant or loan, rather than after three years.
• Instituting site visits for large grant and loan recipients.
• Corroborating job numbers reported by recipients with other departments of state government.

The bill will require that DCED improve its reporting procedures for job creation and job retention by: 

• Providing more complete success and failure statistics to the public and General Assembly.
• Reporting penalties waived and penalties assessed on grant and loan recipients.
• Improving the benchmarks and performance measures included in the DCED Annual Financing Strategy.
• Requiring the inclusion of the DCED Annual Financing Strategy on the state's website. 

"With the amount of taxpayer dollars being invested in job creation, we need to know what works and what doesn't so we can create and retain the most jobs possible and not waste funds on unworthy projects. That requires the kind of thorough monitoring and reporting that my legislation provides," said Orie.