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Pennsylvania Will Run Out Of Cash Tonight, Leaving $860MM Of Bills Unpaid
Pennsylvania Will Run Out Of Cash Tonight, Leaving $860MM Of Bills Unpaid
As equity markets spike to all new highs with each passing day, the number of fiscal crises springing up within local and state governments around the country are reaching somewhat alarming levels, even if they’re being completely ignored by investors. As Reuters notes this morning, the state of Pennsylvania may become the latest example government failure when it runs out of cash later tonight leaving some $860 million worth of bills unpaid.
Pennsylvania could run out of cash on Friday, leaving $860 million of bill payments up in the air as lawmakers continue to argue over a revenue package that is more than two months overdue.
The state legislature passed a $32.5 billion spending plan on June 30, the end of the fiscal year and the deadline for the current year’s budget.
But it failed to agree on a revenue package to pay for those expenses, and the state has been borrowing money from its own short-term investment pool.
Treasurer Joe Torsella has said he will not issue more such loans and that the state’s general fund will likely run down to zero on Friday.
While Pennsylvania will be able to make some payments – including nearly $102 million of debt service costs due on Friday – it will not be able to pay all the bills that are due, said Treasury spokesman Mike Connolly.
An estimated $860 million of payments for various items, possibly including schools and Medicaid, could be delayed until the legislature fully funds the budget.
Not surprisingly, Pennsylvania’s funding crisis has only been exacerbated by a political dispute over whether the state’s budget gap should be filled with extra taxes and/or expense cuts.
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37 Facts About How Cruel This Economy Has Been To Millions Of Desperate American Families
37 Facts About How Cruel This Economy Has Been To Millions Of Desperate American Families
Have you ever laid in bed awake at night with a knot in your stomach because you didn’t know how your family was possibly going to make it through the next month financially? Have you ever felt the desperation of not being able to provide the basic necessities for your family even though you tried as hard as you could? All over America tonight, there are millions of desperate families that are being ripped apart by this economy. There aren’t nearly enough jobs, and millions of Americans that actually do have jobs aren’t making enough to even provide the basics for their families.
When you have tried everything that you can think of and nothing works, it can be absolutely soul crushing. Today, one of my regular readers explained that he was not going to be online for a while because his power had been turned off. He has been out of work for quite a while, and eventually the money runs out. Have you ever been there? If you have ever experienced that moment, you know that it stays with you for the rest of your life. If you are single that is bad enough, but when you have to look into the eyes of your children and explain to them why there won’t be any dinner tonight or why they have to move into a homeless shelter it can feel like someone has driven a stake into your heart. In this article you will find a lot of very shocking economic statistics. But please remember that behind each statistic are the tragic stories of millions of desperately hurting American families.
…click on the above link to read the rest of the article…
