HARRISBURG, Pa. (AP) – The deficit-strapped Pennsylvania state government is going deeper into debt to the state treasury.
The state Treasury Department said Wednesday it’s providing another $600 million to keep the state from overdrawing its main bank account. That puts Pennsylvania $2.2 billion in debt to the treasury as it draws money on a credit line until more tax collections flow in.
The treasury’s 0.75 percent-interest credit line must be repaid by June 30.
Pennsylvania’s tax collections are lagging expectations four months into the fiscal year. The state is facing a projected $1.7 billion deficit next year, and the potential that human services programs are also underfunded by hundreds of millions of dollars this year.
This is the seventh time since the recession the Treasury Department has provided such assistance.