Pennsylvania Gets 2nd Treasury Loan To Make Payments On Time
The Pennsylvania Treasury is extending a five-day, $700 million credit line to tide over the state government's deficit-ridden finances.
Pennsylvania Treasurer Joe Torsella said in a statement Thursday that the credit line is to be paid back no later than Oct. 20. He says the cash is necessary for Democratic Gov. Tom Wolf's administration to make payments on time to Medicaid providers.
It is the second such short-term loan Torsella, also a Democrat, has extended to the state this year. Torsella had refused to extend a loan last month, noting the Legislature hadn't approved a revenue package to fully fund a $32 billion budget bill lawmakers approved June 30.
However, Torsella notes that Wolf is taking unilateral action to balance the budget. That includes looking to borrow nearly $1.5 billion.