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 immediately.” 

 

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