HARRISBURG, Pa., Nov. 16, 2016 /PRNewswire/ -- The Pennsylvania Treasury today announced that the administration drew an additional $600 million against the $2.5 billion line of credit that Treasury extended to the commonwealth in August. The funds were needed to prevent the state's General Fund from running out of money.
The state has now borrowed $2.2 billion against the credit line, after the previous $400 million draw in August and $1.2 billion in September. The line of credit has $300 million remaining.
"No family or business can expect to continually borrow money just to pay the bills and the state is no different," Pennsylvania Treasurer Timothy Reese said. "Just yesterday the state's Independent Fiscal Office once again reported that Pennsylvania faces a long-term structural deficit, and it is clear that the situation will only get worse if nothing is done."
The $2.5 billion line of credit has an interest rate of 0.75 percent on the money borrowed against it. The state is required to pay back the loan to Treasury by June 30, 2017.
Click here to read a news release from August 16 that contains details about the line of credit and additional materials on the state's historical borrowing and its impact.
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SOURCE Pennsylvania Treasury