HARRISBURG, Pa. (AP) – There’s good news and bad news for Pennsylvania state government finances.
The New York-based Moody’s credit rating agency is upgrading the battered rating of a state program that helps school districts get more favorable loan terms by giving a guarantee to repay bondholders.
Moody’s cited a July law that strengthened the program, even during a budget stalemate like the one that dragged 10 months into the state government’s 2015-16 fiscal year.
However, an entrenched deficit is still plaguing state finances, and the state Treasury Department said Tuesday that it is providing a $2.5 billion credit line to prevent the state’s main bank account from being overdrawn.
It says draw of $400 million was immediately made. It’s the seventh time since the recession it has provided such assistance.