PA Treasury Announces Loan; Republicans Call Hypocrisy

HARRISBURG (WSKG) — State Treasurer Joe Torsella has decided to authorize a five-day, $700 million loan to keep Pennsylvania from missing Medicaid payments while its general fund runs low.  The move is politically fraught. For two months, Torsella, a Democrat, refused to lend money until the legislature passed a plan that would balance the state’s finances. Now, Governor Tom Wolf is taking unilateral steps to try and bring the three-months-late budget in line. But critics of Torsella and Wolf say not enough has actually changed to justify the shift in position. The new loan–which comes from the Treasury’s Short-Term Investment Pool–is only designed to tide the general fund over until the state gets paid a federal reimbursement in a few days.