News

Pa. Legislature taking out loans to make payroll

Written by The Associated Press | Oct 27, 2015 9:21 AM
Capitol_harrisburg.jpg

(Harrisburg) -- The state House and Senate are now borrowing money amid a four-month budget stalemate that has depleted lawmakers' reserves and shut off billions of dollars in aid to schools and social services.  

A Republican spokeswoman says the Senate borrowed $9 million from PNC Bank.

The interest rate on the loan taken out Friday is about three percent. 

Meanwhile, House Republicans secured a $30 million line of credit from five banks on Octtober 19 and promptly drew down $5 million.

A spokesman says the interest rate is 3.25 percent and climbs to 4.25 percent in January.  

House Democrats have been receiving advances from the state Treasury since September. 

The budget impasse is 119 days old

Published in News

Tagged under , , , , , , , , ,

back to top

Post a comment

Give Now

Estate Planning

Support for WITF is provided by:

Become a WITF sponsor today »

Smart Talk

National Edward R. Murrow Awards

DuPont Columbia Awards

Support Local Journalism

Latest News from NPR

Support for WITF is provided by:

Become a WITF sponsor today »