School officials to LaGrotta: Shut up

January 20, 2006

PAT LITOWITZ
plitowitz@ncnewsonline.com

Findings from the New Castle school district's preliminary state audit haven't been publicly disclosed, but hard feelings have been unleashed.

The district's message to state Rep. Frank LaGrotta: Keep your comments to yourself.

LaGrotta's response: I hope I'm wrong, but I'm not.

On Jan. 18, the Ellwood City legislator claimed the audit would disclose potential significant and unexplained overpayments to Laidlaw Transit, the district's bus company. The audit covers the school years 2002-2003 and 2003-2004.

LaGrotta said his information came from inside the Pennsylvania Auditor General's Office.

"The district is disappointed that Mr. LaGrotta chose to comment on matters which apparently reflect his own speculation and conjecture," district solicitor Charles Sapienza said Jan. 19. "Furthermore, these comments were made prior to district officials having any opportunity to meet with state auditors."

Sapienza also noted a representative of the auditor general's office had advised him that no one from that department was authorized to discuss the audit with LaGrotta.

"Moreover, (the auditor general's office) explained that releasing information prior to the completed audit is a violation of the auditor general's policy."

In two separate meetings Jan. 19, auditors met with Superintendent George Gabriel, business manager Joseph Ambrosini and special programs coordinator Stan Magusiak. The second session involved the school board, which had five members in attendance.

"We were given nothing," Gabriel said. "We didn't even receive notes from them. It was a discussion."

The state did not permit the public to attend. Kevin Barwin, a regional supervisor with the state's school audit team, said Jan. 18 the meeting was not covered under the state's Sunshine Law.

"The things they talked about today may or may not be included in any report," Sapienza said. "We're not and cannot talk about what the exit audit was all about."

LaGrotta, however, was not bound by the auditor's restrictions.

"Their objection to my effort to keep the taxpayers fully informed are definitely noted," LaGrotta said Jan. 19. "The only relative issue is, did the New Castle Area School District overpay its transportation provider? Was the contract bid and what were the reasons for any such overpayment?"

The focus of LaGrotta's charges is the district's assistant superintendent, Nick DeRosa, and Laidlaw.

DeRosa and his business partner, John Orlando, sold four properties to Affordable Housing of Lawrence County, a nonprofit agency started by the Lawrence County Housing Authority.

Karen DeCarlo, a Laidlaw manager, is a former Affordable Housing board member. During her tenure on the board, DeCarlo voted in favor of purchasing the properties.

DeRosa has directed the district's transportation program since 1989, when he became assistance superintendent. In 1996, Laidlaw won the contract to bus the district's students. It has serviced the district ever since.

DeCarlo, a city councilwoman, said she does not take part in Laidlaw's negotiations with the district.

In the 2004-2005 school year, New Castle spent approximately $1.2 million on transportation costs. Of that amount, the district was reimbursed $679,068 by the state.

In January, the school board voted to put the transportation contract up for bid.

"Everything that has happened in Lawrence County - from the Gary Felasco affair to New Castle school board members and their trip to New Orleans - has raised a tremendous veil of mistrust among the taxpayers," LaGrotta said.

"No one hopes that I am wrong more than I do."

Copyright (c) 2006, New Castle News