Some good news, some bad news on Pa. fiscal health

    There’s good news and bad news for Pennsylvania state government finances.

    The New York-based Moody’s credit rating agency is upgrading the battered rating of a state program that helps school districts get more favorable loan terms by giving a guarantee to repay bondholders.

    Moody’s cited a July law that strengthened the program, even during the budget stalemate that dragged 10 months into the state government’s 2015-16 fiscal year.

    However, an entrenched deficit is still plaguing state finances, and the state Treasury Department said Tuesday that it is providing a $2.5 billion credit line to prevent the state’s main bank account from being overdrawn.

    It said a draw of $400 million was immediately made. It’s the seventh time since the recession it has provided such assistance.

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