Harrisburg, PA - Treasurer Stacy Garrity today announced the authorization of a revolving line of credit from Treasury’s Short-Term Investment Pool (STIP) to the Office of the Budget to avoid delays in statutorily authorized capital projects.
The cash balance of the subaccounts within the Capital Facilities Fund are currently insufficient to meet the projected needs over the next 90 days. The $300 million line of credit will allow projects to proceed uninterrupted until the Commonwealth issues new general obligation debt, which is currently anticipated to be about $1 billion in mid-September.
The line of credit will be used exclusively for the payment or reimbursement of authorized capital project costs as defined in the Capital Facilities Debt Enabling Act and payable from the Capital Facilities Fund. It is to be repaid within five business days following the closing of the new debt issuance or Nov. 4, whichever is earlier.