Friday, August 31, 2007

More Information Emerges in PHEAA Scandal

Contact: Jason High – 866-509-3424 or 814-414-1264

More Information Emerges in PHEAA Scandal

HOLLIDAYSBURG (08-31-2007) - State Senator John H. Eichelberger, Jr. learned
late yesterday of a letter mailed from the Governor to the Chairman, Vice
Chairman and board members of the Pennsylvania Higher Education Assistance
Agency (PHEAA) in which he listed startling new information about the depth
of the problems swirling around PHEAA. The $570,000 bonus figure initially
released included just the agency's management team. The new total includes
bonus money paid to all staff in 2007 and has soared to $2.5 million. The
patronage laden work force reaches a total of 2,574 employees. Defenders of
PHEAA cite the good work of the agency and the management in particular to
justify these bonuses, but a closer look reveals that when comparing the
same 9 month period from last year to this, operating expenses have grown
70% faster than operating revenues, operating income is down and the
agency's net assets are $11.5 million lower.

Eichelberger expressed his outrage by saying, "This mess is unfortunately
what I have found all too often in Harrisburg. The legislature and many
state agencies are bloated bureaucracies that have no regard whatsoever for
the hard working people who pay their salaries. This is an embarrassment
for Pennsylvania and I will do everything in my power to stop this abuse


Jason E. High
Legislative Director
Senator John H. Eichelberger, Jr.
460 MCB Harrisburg, PA 17120
Harrisburg Office: 717-787-5490
Harrisburg Fax: 717-787-0562

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