Thursday, December 2, 2010

Wagner: Billion $ Bond Sale "Inappropriate"

Two top Democrats may be preventing Pennsylvania Governor Ed Rendell from issuing a billion-dollar bond sale during his final days in office.
The governor needs approval from either the Auditor General or Treasurer to issue a bond offering, but Democrat Jack Wagner says he won’t sign off on Rendell’s proposed billion dollar sale.
The Auditor General says the issue is “inappropriate” in the final days of Rendell’s tenure.

"Taking on an additional one billion in debt means for the next 20 years we will have to pay an annual debt service of approximately 82 million dollars a year, beginning next year – 2011. That’s another 82 million added on to the deficit that’s projected to be 4 to 5 billion dollars."

Rendell’s spokesman, Gary Tuma, says Pennsylvania needs the bonds, because most of the money will go toward construction projects already underway....

"We have little choice but to raise this money. If we don’t fund these projects, construction will stop, jobs will be lost. And in many cases, the builders, the contractors, the developers, could have grounds to sue the commonwealth."

Treasurer Rob McCord, another Democrat, hasn’t decided whether or not to approve the bonds.
He’s sent a letter to Governor-elect Tom Corbett asking for the Republican’s input. A Corbett spokesman says McCord will get a response later this week.

No comments: