Funds needed to prevent state’s General Fund from falling into the negative
Harrisburg, PA – The Pennsylvania Treasury today announced that the administration drew another $1.2 billion against the $2.5 billion line of credit that Treasury extended to the commonwealth last month. Accessing the additional funds once again prevents the General Fund cash balance from falling into the negative.
Today’s draw, combined with the $400 million the state previously borrowed against the credit line to prevent the General Fund from running out of money, brings the total amount borrowed to $1.6 billion. The line of credit has $900 million remaining.
“Continuing to borrow to pay our state’s bills clearly illustrates Pennsylvania’s poor financial health. The line of credit merely addresses the symptoms and does nothing to cure the cause – our state’s structural deficit.”Pennsylvania Treasurer, Timothy Reese