|Posted:||July 27, 2015 04:29 PM|
|From:||Representative Marguerite Quinn|
|To:||All House members|
|Subject:||Reimbursement to Political Subdivisions and Municipalities for interest costs incurred from budget impasse|
|In the very near future, I plan to introduce legislation that will amend The Fiscal Code to require the Commonwealth to pay interest and cost reimbursements to political subdivisions and municipalities that had to incur short-term loans or liquidate investments in order to prevent interruption of critical program services during a period of budget impasse that exceeds 30 days.
My bill will also provide the Treasury Department with the authority to make lines of credit available to political subdivisions and municipalities under the investment authority granted to Treasury in The Fiscal Code. Treasury shall only have the authority to provide lines of credits from those funds that are beyond the ordinary needs of the Commonwealth. Treasury shall be permitted to charge interest on any outstanding amount of credit, not to exceed 20 basis points over the rate set by the Board of Finance and Revenue for Commonwealth depositories pursuant to Section 505 of The Fiscal Code (current maximum interest rate that could be charged by Treasury would be 0.40%). Funds for the reimbursement of interest costs would be appropriated by the General Assembly.
I would appreciate your co-sponsorship of this important legislation.
Introduced as HB1487