Loans to Pa. schools add up to $431 million
Pennsylvania schools have borrowed at least $431 million since the state’s budget impasse began in July.
Auditor General Eugene DePasquale said his office has now heard from more than half of the state’s school districts in an effort to track the fiscal effects of the state’s budget stalemate.
“It’s bad now, but we go from bad to borderline disastrous if something isn’t done by Thanksgiving,” said DePasquale.
He added that borrowing costs for schools and intermediate units “could reach” $14 million.
Twenty-nine school districts and intermediate units have reported taking out loans to the state’s auditors. More than 50 additional school districts are expected to borrow money next month.
The budget impasse has gone on for nearly four months.
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