LAWRENCE CO. Officials seek answers on check shortfall

Letters are asking Gov. Rendell to look into removing the county treasurer.
By LAURE CIOFFI
VINDICATOR NEW CASTLE BUREAU
NEW CASTLE, Pa. -- Lawrence County commissioners want the county treasurer to explain why there wasn't enough money in the bank to cover 70 pension checks.
Commissioner Steve Craig said the county controller's office received a $200,000 check from the firm handling pension funds and gave it to the county treasurer's office April 23 to deposit.
Bank records show the check wasn't deposited until May 4 -- nearly a week after retirees got their checks. The county's account was short of money for 70 checks cashed from April 30 to May 4. First Commonwealth Bank cashed the retirees' checks but threatened to charge the county fees for bounced checks, Craig said.
First Commonwealth has since backed off asking for fees and has agreed to meet with commissioners, Controller Maryann Reiter and Treasurer Gary Felasco on the matter next week.
Craig said this isn't the first time deposits have come in late and there wasn't enough money to cover county checks.
Craig said records show that a $311,000 check from the pension fund was given to the treasurer's office March 19 but not deposited until March 29. He noted, however, that smaller checks are being deposited the next day.
"It looks to me like a disturbing trend," the commissioner said.
Response
Felasco said Tuesday he had not received the bank statement on the May transaction yet but noted it's not the first time the account has been short of cash.
"We've had a problem in the past, but it is not my office's fault," he said. He would not say who should be blamed.
County Controller Maryann Reiter said the fault could only be with the county treasurer's office.
"We document when we get the checks and when we deliver them to the treasurer's office. From there they go to the bank," she said.
Commissioner Dan Vogler said they are now considering having the pension fund directly wire the money to the bank.
This is only the latest matter to plague Felasco.
Also Tuesday, county commissioners, a county jury commissioner and a citizens group joined others who are writing to Gov. Ed Rendell asking him to look into the process of removing Felasco from office.
Commissioner Dan Vogler proposed commissioners send a letter after reading an article in Sunday's Vindicator in which the governor said he would look into the removal process, if asked.
State statute
The seldom-used statute allows Pennsylvania's governor to start a removal-for-cause action. It also requires a two-thirds vote of the state Senate.
"I took a look at the statute," said county Solicitor John Hodge. "There are literally no cases on it, but it exists. It is there. The board may want to follow up with the governor."
Rendell told The Vindicator on Saturday that he had not been asked to look into the matter, but would if asked.
Matthew Mangino, Lawrence County's district attorney, sent Rendell a letter Monday asking him to look into the process to remove Felasco.
Lawrence County Jury Commissioner A. Wayne Yoho also sent a letter to Rendell, along with a petition signed by all elected county officials and 59 county employees requesting Felasco's resignation. A copy also was given to Felasco, who has not responded, Yoho said.
Dewey Lutz of Concerned Citizens for Better Government, a group that has been asking for Felasco's removal, said it is also sending Rendell a letter along with a petition bearing 1,800 names asking for his removal.
Other controversies
Felasco first came under fire in February after a Vindicator story noted that he had not paid his property taxes since 2000. Pennsylvania State Police are investigating how the property escaped the yearly sale for delinquent property taxes. The police are also looking into Felasco's use of two county cellular telephones. The New Castle News revealed that the one telephone number was being given out to provide directions to swinger parties on the Ohio-Pennsylvania line and the other telephone was being used by Felasco's wife, Jeanine, for personal use.
The Pennsylvania Auditor General is investigating a transfer of nearly $1 million Felasco made from the county liquid fuels fund to the county general fund last year.
cioffi@vindy.com