10/16/17
by News Department on 10/16/17Budget...
Pennsylvania's deficit-riddled finances are in new territory, as Democratic Gov. Tom Wolf assembles a package to balance the state's budget without involvement from a Republican-controlled Legislature.
Three-and-a-half months into the state's fiscal year, Wolf has bypassed a Legislature that hasn't sorted out a way to finance a nearly $32 billion budget bill it passed June 30.
Instead, he is working on a $2.2 billion budget-balancing strategy that relies heavily on borrowing to get the state through the year. For now, the state is relying on a Pennsylvania Treasury credit line to make on-time payments through Friday.
Wolf's administration is discussing more such agreements with the Treasury Department to ensure it can make on-time payments in the coming weeks, including a $1.2 billion aid payment due Oct. 26 to public schools.
Wolf's administration hopes to borrow $165 million to subsidize grant programs that are normally paid for by general tax collections; find roughly $200 million in savings; and come up with another $250 million by tapping unspecified off-budget programs or borrowing against future revenues.
The House and Senate each return to session today.
