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Treasury loan props up Pennsylvania government budget after operating funds hit 10-year low

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HARRISBURG, Pennsylvania — Pennsylvania's state treasurer is loaning money to the government's main bank account because operating funds are at a 10-year low.

A spokesman for Treasurer Rob McCord said Tuesday that the line of credit will borrow from other state funds at a low interest rate.

The spokesman, Gary Tuma, says the treasurer's office is opening the line of credit at the request of Gov. Tom Corbett's administration. A Corbett spokesman didn't immediately respond to a request for comment.

But Tuma says this is the earliest that such a line of credit has ever been opened to prop up the government's operating funds.

Pennsylvania received its third bond downgrade in two years in July, after Corbett signed a $29 billion budget that papers over a massive deficit with $2.5 billion in stopgaps.

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