Rendell's Billion Dollar Bond Request Shot Down
HARRISBURG (CBS) - Governor Rendell's plan for a one billion dollar bond issue before he leaves office has run into rough waters.
Either the state auditor general or the state treasurer must sign off on the billion dollars in borrowing. And Auditor General Jack Wagner says, "no can do"
Wagner explains, "I have some serious concerns about debt problems, runaway debt problems."
He's concerned about saddling an incoming governor with a bond issue of this size. Steve Crawford is Governor Rendell's chief-of-staff and he disagrees, "The auditor general is a good fiscal watchdog… we just think he happens to be wrong in this case."
Crawford says most of the money is for needed improvements to public facilities and infrastructure, and he says if the state does not act now, it will lose the chance for federal subsidies that will help pay for the borrowing.
Be that as it may, the auditor general's position means the fate of the bond issue lies in the hands of the treasurer, who is asking Governor-elect Tom Corbett's input before he decides what to do. A spokesman says Corbett is reviewing the matter.
Reported by Tony Romeo, KYW Newsradio
