Pa. schools borrowed $346M because of late budget, auditor general says

HARRISBURG, Pa. (WHTM) – At least 17 Pennsylvania school districts and two intermediate units have been forced to borrow more than $346 million to meet expenses during the state budget impasse, Auditor General Eugene DePasquale said Tuesday.

DePasquale said interest and fees on those loans could reach $11.2 million.

At a news conference in the Capitol Rotunda, DePasquale said at least 28 additional districts and two more intermediate units will be forced to borrow an estimated total of $122 million in October.

He said some districts are struggling to get loans.

The Steelton-Highspire School District reported that it has enough cash to last until the end of September, then it will need to borrow about $8 million. So far, multiple loan requests have been rejected by banks, DePasquale said.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s