The Freeport Area School District is disputing a $26,358 judgment from the state alleging failure to pay reimbursement and interest to the unemployment compensation fund.

The state Department of Labor and Industry filed the judgment in May in Butler County Common Pleas Court, claiming the district failed to pay reimbursements in 2021 and 2022 and accrued interest.

“We’re working with our solicitor to battle the notice of judgment,” said Brad Walker, the district’s director of finance and operations.

The dispute revolves around unemployment claims that were obtained fraudulently using names of district employees, Walker said.

“The district filed reports with the UC office monthly and quarterly battling these charges,” Walker said. “We have all proper documentation from July ’21 and on. It is the district’s position the amount being passed on to the district is null and void. We don't owe that money.”

He said the district has been disputing the charges with the department, but resolution of the dispute has been slow, which led to the state filing the judgment.

According to the judgment, which was filed as a lien, the district was required to pay reimbursement totaling $68,067 in 2021 and 2022. The district made payments totaling $44,953, but still owes a balance of $23,114, as well as $3,244 in interest, the state maintains.