Pennsylvania's reserves up, finances stable, governor says
Gov. Tom Wolf and Treasurer Joe Torsella say Pennsylvania state government's improving fiscal stability means it shouldn't need a short-term liquidity loan in the just-started fiscal year.
Wolf and Torsella, both Democrats, spoke at a news conference Thursday as they touted a $22 million deposit into a reserve account as part of a new $32.7 billion state budget plan.
Since the Recession, Pennsylvania has reliably bailed out its deficit-ridden finances by borrowing money during increasingly long stretches when its bank account was particularly low. The state has needed a Treasury Department loan every year for the last five years.
Wolf acknowledged that $22 million is a small amount, but he says it's Pennsylvania's first meaningful deposit into reserves in 11 years.
The Republican-controlled Legislature approved the budget plan last month.