PA-BGT: Wolf Borrows $2 Billion
After releasing $3.3 billion in emergency funding for PA schools, counties and service providers, Gov. Tom Wolf took out a $2 billion line of credit from the state Treasury to ensure none of the checks bounce.
The state was in line to have a negative $922 million bank balance after catching up on 16,400 payments that had not been processed since July 1st, Steve Esack and Scott Kraus of the Morning Call report.
“Governor Tom Wolf needs to come forward and be accountable for his decision,” said Megan Sweeney, communications director for the PA Republican Party. “Whether it’s his taxpayer-funded campaigning during a travel ban or his decision to accept a multi-billion loan from the Treasury, Tom Wolf’s hypocrisy knows no bounds.”
The $2 billion Treasury loan could be the first of many, with Wolf failing at every attempt to implement new taxes, though Treasurer Timothy Reese may be hesitant to continue lending.
“Borrowing to meet operating expenses is not a responsible or sustainable solution,” Reese said.
The budget impasse is now into its 27th week, with no signs of an agreement on the horizon.