Credit Downgrades Show School Construction Reimbursement Changes Needed Now, Grove Says
7/30/2015
HARRISBURG – Rep. Seth Grove (R-York) today said the recent credit downgrading of eight school districts across Pennsylvania by Moody’s Investor Service demonstrates the dire need for school construction reimbursement reform.

Three school districts in western Pennsylvania were downgraded to the service’s junk bond category, making it more difficult for them to borrow money. It will also make it more expensive for those schools to build or upgrade their facilities.

“Our school districts across Pennsylvania face a wide variety of challenges, from skyrocketing pension costs to the Commonwealth’s unfair school funding formula,” Grove said. “What is especially disturbing is the fact that Gov. Tom Wolf had the chance to reform the way schools are reimbursed for their construction projects and he instead decided to veto the budget bill.”

Reform for the Planning and Construction Workbook Process, or PlanCon, was passed along with the House and Senate’s budget in late June. PlanCon is archaic and outdated, involving 11 steps and the use of microfilm.

The measure would have led to reimbursements for school districts across the state, including:

• Central York School District
• Dallastown School District
• Dover Area School District
• Hanover Public School District
• South Eastern School District
• South Western School District
• Southern York School District
• West Shore School District
• York City School District
• York County School of Technology
• York Suburban School District

“Schools that teach require the money to operate and improve their facilities,” Grove said. “I continue to believe that reform of PlanCon is essential to making that happen.”

Representative Seth Grove
196th District
Pennsylvania House of Representatives
Media Contact: Nick Ruffner
717.260.6258
RepGrove.com / Facebook.com/RepSethGrove
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