Pennsylvania state government borrows another $1.2B

budget progress

HARRISBURG, Pa. (AP) – Pennsylvania’s state government finances continue to scrape bottom.

The state Treasury Department said Tuesday that it’s providing another $1.2 billion to keep the state from overdrawing its main bank account until more tax collections flow in.

That’s in addition to last month’s $400 million draw on a Treasury Department credit line of $2.5 billion. It carries a 0.75 percent interest rate and must be repaid by June 30.

Democratic Gov. Tom Wolf signed a projected $650 million tax package in July to help narrow the state’s long-term deficit. Some top state lawmakers still expect to deal with another significant deficit when they assemble a budget for the next fiscal year.

The $2.5 billion credit line is the seventh time since the recession the Treasury Department has provided such assistance.

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