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.