HARRISBURG — After criticizing his predecessor for taking out a $1.5 billion loan from the Pennsylvania Department of Treasury, Governor Tom Wolf has announced that his own Administration would be taking out a $2 billion loan from the Pennsylvania Treasury Department in order to pay its bills.
While his campaign called Governor Tom Corbett’s smaller loan a sign of “fiscal mismanagement” in 2014, his staff has yet to make any similar critical comments about their own behavior.
“Governor Tom Wolf needs to come forward and be accountable for his decision,” Republican Party of Pennsylvania Communications Director Megan Sweeney said. “As a candidate, Tom Wolf aired two television ads attacking his opponent for a Treasury Department loan. Now, he’s taking out an even bigger loan during his disastrous first year in office.”
“Whether it’s his taxpayer-funded campaigning during a travel ban or his decision to accept a multi-billion loan from the Treasury, Tom Wolf’s hypocrisy knows no bounds. Sadly, Pennsylvanians are once again left holding the bill for Tom Wolf’s big government agenda.”
Tom Wolf the Candidate Was Against Treasury Loans…
On September 17, 2014, a Wolf campaign spokesman criticized Governor Tom Corbett for taking out a $1.5 billion loan from the Treasury. “Just this week, Tom Corbett’s failed fiscal management forced Pennsylvania to take out a $1.5 billion loan just to meet basic operating expenses. Tom Corbett has created a fiscal mess in Pennsylvania, and it is even more clear that Pennsylvania needs a fresh start.” (“Tom Corbett’s Fiscal Mismanagement Puts Pennsylvania in the Red,” Tom Wolf for Governor, 9/17/2014)
One month later, Tom Wolf released the ad “Three Days,” and “Even Worse,” which criticized his opponent for taking out a loan from the Treasury. “TRANSCRIPT ‘THREE DAYS’ Voice-Over: With Tom Corbett, things keep getting worse. Chyron: TOM CORBETT Voice-Over: September 16th, budget deficits force Pennsylvania to borrow $1.5 billion just to keep the lights on.” “TRANSCRIPT ‘EVEN WORSE’ Reporter: “The state government is out of cash and is scrambling to make sure school districts and state employees can even be paid.” [WGAL, 9/16/14] (“NEW ADS: Wolf Campaign Releases Two New Television Ads Holding Tom Corbett Accountable For His Failed Economic Record,” Tom Wolf for Governor, 10/6/2014)
Tom Wolf the Governor Takes Out $2 Billion Loan
“Gov. Tom Wolf needs a new piggy bank. He broke his on Wednesday, a day after 500 school districts, 67 counties and hundreds of social service nonprofits started receiving some of the $3.3 billion money they were owed after a half-year budget impasse.The Wolf administration expedited those IOUs payments Tuesday as part of a 2015-16 spending plan Wolf partially signed last week. But the sped-up payments quickly drained the state’s finances, resulting in a projected negative bank balance of $922 million by next week. So on Wednesday, the administration took out a $2 billion line of credit — at 0.6 percent interest — from the state Treasury. The line of credit is akin to a home equity loan, offering money if necessary.” (Steve Esack and Scott Kraus, “Gov. Tom Wolf borrows $2 billion to pay PA bills as report says state’s finances stink,” Allentown Morning Call, 1/7/2016)