This article was originally published in The Notebook. In August 2020, The Notebook became Chalkbeat Philadelphia.
Pennsylvania’s top fiscal watchdog says another budget impasse would lead to a “back-door tax increase.”
State Auditor General Eugene DePasquale said Thursday that if lawmakers and the governor allow another lengthy budget stalemate to take place without “dealing” with Pennsylvania’s projected structural deficit, the commonwealth will receive another credit downgrade, which would increase the cost of borrowing.
“Every road project, every school construction project, every time a school district or the state want to take out a loan … that money will not go as far,” said DePasquale at a press conference in the Capitol.