Pennsylvania Treasurer Stacy Garrity announced her office would make short term loans available for county governments and Head Start childcare centers, as Pennsylvania's budget impasse builds to being three months late.

County governments are mandated to provide human services— even when there's no state budget. On the hook for millions, some are turning to take out loans... which can come with high interest rates. When a budget is eventually passed, interest payments are not automatically reimbursed. This leaves local taxpayers to pay for the interest, which only exists because lawmakers didn’t pass a budget on time.

Garrity announced that $500 million would be available for short term loans, at a 4.5% interest rate.

This money will be specifically available for county human service operations-- like behavioral health, intellectual disability support, and services for older Pennsylvanians.

It will also be available for Head Start Child Care programs.

Applications will be sent to all 67 counties; and will be for operational costs. Garrity says she is starting with these two groups because they had reached out to her.

"People are starting to feel the pain and they're going to start feeling negative impacts. And who does it hurt? It hurts our kids. It hurts our seniors. It hurts our vulnerable populations,” Garrity said. "Our hope is that this budget impasse doesn't drag on too much longer. If it does, we'll have to revisit the number. But we think it's a good starting point."

School districts, construction contractors, and more might come knocking for stable loans if the budget impasse continues.

Pennsylvania is collecting taxes, but with no budget, the state cannot spend money unless it is specifically linked to health and safety-- such as medicaid or state police. As the treasurer, Garrity is able to do some money management, like investing or lending, independent of the budget.