Pennsylvania’s Office of the Budget has opened an investigation into Woodland Hills School District’s finances, according to a letter that state Rep. Abigail Salisbury posted to social media Wednesday night.
The announcement came in the middle of a packed school board meeting, where the attention was focused on the recent resignation of school board president Terri Lawson from her leadership role on the board.
Lawson was charged last week with theft and forgery for allegedly spending $10,000 on a credit card while Rankin borough manager. She was fired from that role last month.
The school district’s solicitor told onlookers Wednesday that Lawson will remain a sitting board member while the district reviews her “qualifications for continuing to serve on the board” and that the board will take action if needed.
At the start of the meeting, solicitor Matthew Racunas stated that the board is not aware of any financial misappropriations within the district.
“We take our fiduciary responsibility seriously and remain vigilant in our oversight of district finances,” Racunas said. “Any allegations or suggestions of financial wrongdoings are without foundation based on the information available to the board.”
But the state will audit the district to determine whether its “fiscal management and operations” comply with state law, according to the letter released by Salisbury.
The letter, dated Feb. 17, named the district’s long-term debt, procurement cards, contracting and bidding as areas of focus, as well as the annual review of the district’s superintendent. Investigators will look at the district’s finances from January 2022 through February 2026.
In December, sitting school board member Darnika Reed told Facebook followers that she had filed a fraud, waste and abuse complaint with the Pennsylvania Department of Education. Sara Raszewski, a former Woodland Hills school board member, did the same last year.
“There is so much wasteful spending that I saw as a board member and also not being on the board, and there were some examples given tonight of what those entail,” Raszewski told WESA.
She pointed to contracts related to a major renovation of a district elementary school in Edgewood. WTAE first reported this week that change orders related to the $20 million project increased its price tag by $3 million, according to district records obtained by the station.
Last month, Salisbury waded into the turmoil with a statement calling on the state’s Attorney General’s Office and the Allegheny County District Attorney’s Office to examine the district’s spending.
“Every year, as part of the state budget process, I fight to bring as many state dollars home as possible for the kids in Woodland Hills,” she wrote in a statement.
“…That money is for teaching students — nothing else.”
Salisbury also raised concerns about the ongoing paid leave district superintendent Joe Maluchnik was placed on in November — an action some residents allege came after he raised questions about multiple district contracts.
“Our superintendent is on leave for simply questioning the corruption and financial mishandling that began under the previous [superintendent],” said Tara Reis, another former school board member who spoke on Wednesday.
Racunas said that Maluchnik’s leave is “in no way related to any of the false allegations of misuse of district funds.”
He added that the district is open and willing to meet with Salisbury and allow her to review public documents, although Racunas said the representative has yet to take district leaders up on their offer.
Asked after the meeting about the state investigation, new school board president Karen Lyons offered no comment.