Due to the budget impasse–there is no revenue plan to pay for the spending plan approved for the 2017-18 Fiscal Year that started on July 1st–the Pennsylvania Treasury loaned $750 million from its Short Term Investment Pool on August 15th. Based on the press release from the Treasurer’s office the loan has to be repaid by Wednesday. That release also notes that the Pool is not a rainy day fund intended as a backstop to the general fund.
On a separate website of the Treasury the investment pools are identified as follows: the liquid asset pool, where balance range from $1.079 billion for the general fund to $0.01 for the Growing Greener sinking fund, the common investment, and the Treasury managed cash pool.
Later into the month if there is no budget then the decisions on what gets paid–as we wrote about in a recent Policy Brief–will come into play.