Pennsylvania's fiscal situation sees good, bad news

Written by Tim Lambert, WITF Multimedia News Director | Aug 17, 2016 12:42 PM

In this Oct. 7, 2015 photo, people walk past the Pennsylvania Capitol building in Harrisburg, Pa. Truly diverse legislatures are rarity across the United States; while minorities have made some political gains, they remain severely underrepresented in Congress and nearly every state legislature, according to an analysis of demographic data by The Associated Press. (AP Photo/Matt Rourke)

(Harrisburg) -- There's good news and bad news for the commonwealth's state government finances.

The New York-based Moody's credit rating agency is upgrading the battered rating of a state program that helps school districts get more favorable loan terms by giving a guarantee to repay bondholders.  

Moody's cited a July law that strengthened the program, even during a budget stalemate like the one that dragged 10 months into the state government's 2015-16 fiscal year. 

However, an entrenched deficit is still plaguing state finances, and the state Treasury Department says it's providing a $2.5 billion credit line to prevent the state's main bank account from being overdrawn. 

A draw of $400 million was immediately made.

It's the seventh time since the recession it has provided such assistance. 

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