Pennsylvania's state treasurer is extending a $2 billion line of credit to prevent the state government from bouncing checks amid a seven-month-old budget fight between Democratic Gov. Tom Wolf and the Republican-controlled Legislature.
Treasurer Tim Reese said the Wolf administration drew $1 billion against the line of credit Wednesday. Reese says the state government's cash balance was expected to be as much as $922 million in the red by next week and remain below $0 until tax collections pick up in early spring.
Reese blames the state's shortfall on a long-term budget deficit that also required a $1.5 billion treasury loan in 2014.
Reese says the loan carries an interest rate of 0.6 percent and payback is required June 30.
