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Chester County Press

State Senate Democrats to introduce legislation forgiving budget impasse-related loan interest for counties, non-profits, and school districts

As the Pennsylvania State Legislature hits 100 days without a state budget, State Sen. Lindsey M. Williams (D-Allegheny) announced that Senate Democrats will introduce legislation to pay off interest accrued on any loan taken out by an entity that receives state funding that was forced to take out a loan during the budget impasse. This includes counties, human service agencies, non-profit agencies, childcare centers, and schools that have been forced to take on additional debt to stay open and continue providing necessary services.

Senate Democratic co-sponsors for the legislation include Sen. Katie Muth (D- Berks, Chester, Montgomery), Sen. Nikil Saval (D-Philadelphia), Sen. Tim Kearney (D-Delaware), Sen. Amanda Cappelletti (D-Delaware, Montgomery), Sen. Patty Kim (D-Dauphin), Sen. Lisa Boscola (D-Lehigh, Northampton), Sen. Judy Schwank (D-Berks), Sen. Nick Pisciottano (D-Allegheny), Sen. Maria Collett (D-Montgomery), Sen. Steve Santarsiero (D-Bucks), Sen. Carolyn Comitta (D-Chester), Sen. Sharif Street (D-Philadelphia), Sen. Wayne Fontana (D-Allegheny), Sen. John Kane (D-Chester, Delaware), Sen. Art Haywood (D-Montgomery, Philadelphia), Sen. Nick Miller (D-Lehigh, Northampton), Sen. Tina Tartaglione (D-Philadelphia), Sen. James Malone (D-Lancaster), and Sen. Anthony Williams (D-Delaware, Philadelphia).

 Sen. Williams said, “I hear from my constituents and from people and organizations across Pennsylvania about the pain that this late budget is causing them daily. People are losing their jobs, rape crisis centers are shutting down, foster parents aren’t getting paid, senior centers are closing, children aren’t receiving the services they need to thrive, all because Pennsylvania has not passed a budget. I have shared some of those stories on the Senate floor over the last few session days.

Our counties, human service agencies, non-profits, childcare centers, and schools should not have to borrow the money that we were constitutionally obligated to provide them back in June. They should not have to drain their reserves or take out loans that require interest payments.

While counties and providers are borrowing money to stay afloat, the Commonwealth is earning interest by not passing a budget. That money should go back to the entities incurring those costs. This legislation attempts to make these entities whole for money that they never should have had to borrow in the first place.”