Cash-Poor Pennsylvania Gets $1.8B Loan To Pay Bills On Time
The cash-strapped Pennsylvania state government is getting another loan to pay its bills on time.
Pennsylvania state Treasurer Joe Torsella said Friday he's authorizing a $1.8 billion credit line that must be paid back by April 2.
It comes as Democratic Gov. Tom Wolf and state lawmakers are patching up a deficit, primarily by borrowing, tapping off-budget programs and expanding casino gambling.
Since the recession, the Treasury Department has reliably bailed out Pennsylvania's deficit-ridden finances when tax collections are slow. Torsella, a Democrat, extended two smaller credit lines this year.
Hours earlier, Wolf signed legislation directing about $650 million to Penn State, Pitt, Temple, Lincoln and the University of Pennsylvania's veterinary school. The aid had been promised, but held up by the House in a budget stalemate until this week.