P.M. BRIEFING : Philadelphia Loan Approved
The Pennsylvania attorney general today announced that he had overcome his reservations about a state pension fund loan to financially troubled Philadelphia, clearing the way for completion of the deal.
Atty. Gen. Ernest D. Preate Jr. issued a joint statement with Gov. Robert P. Casey this morning in Harrisburg announcing his decision to let the Public School Employees’ Retirement System invest in Philadelphia loan notes.
“We have concluded that the action is within the legal authority of PSERS,” Preate and Casey said. They said it was in the best interests of the state “to preserve the position of the city of Philadelphia.”
The teachers’ pension fund has agreed to buy one-fourth of the $150 million in short-term notes Philadelphia hopes to issue to meet payroll and other essential bills through winter.
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