Dermody wants Penn State fine money spent in Pa.
HARRISBURG - A key House Democratic lawmaker wants child victims aid agencies in Pennsylvania to be the sole recipients of $60 million in fines levied against Pennsylvania State University.
The $60 million should be distributed to help service agencies in Pennsylvania and not those in other states, said Minority Leader Frank Dermody, D-33, Allegheny County.
"There should be pressure put on to make sure that money stays here," he added.
Dermody said many service agencies have been hit with state budget cuts in recent years.
As part of sanctions levied by the NCAA last month over the Jerry Sandusky child sex abuse scandal, Penn State has agreed to pay $12 million a year during the next five years into an endowment to fund programs aimed at curbing child abuse and helping abused kids.
A Penn State spokesman said decisions on how to spend the money have yet to be made.
"The consent decree does not specify the organizations that will receive funding from the endowment to be created," said spokesman David LaTorre. "It does, however, provide that the proceeds of the fine may not be used to fund programs at the University."
Penn State is currently working to formulate a plan to create and administer the fund, added LaTorre.