AP-PA--Pennsylvania News Digest, PA

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Do local school districts face a tougher time borrowing money, thanks to the crippling of a state program? While reports suggest some districts face bleak prospects if they need a loan, three local districts that used the program in the past &#8212; Dallas School District, Hazleton Area School District and the Wilks-Barre Area Career and Technical Center &#8212; see no worries.Keystone Crossroads &#8212; a collaboration of public media outlets &#8212; posted a <a href="http://crossroads.newsworks.org/index.php/keystone-crossroads/latest/item/94167-dozens-of-pa-school-districts-face-tougher-time-borrowing-after-budget-impasse" target="_blank">piece </a>Monday warning &#8220;dozens of Pennsylvania&#8217;s most distressed school districts are finding it harder to borrow money in the wake of the state&#8217;s historically protracted budget impasse.&#8221;The risk centers on Pennsylvania&#8217;s &#8220;intercept&#8221; program, in which the state guarantees repayment of loans to districts, boosting a bank&#8217;s confidence in the transaction.During the protracted budget battle between Gov. Tom Wolf, a Democrat, and the Republican-controlled legislature, there was no budget and thus no money for the intercept program. As a result, S&amp;P Global withdrew its credit rating of the program.Although the budget has been resolved, Keystone Crossroads quoted an S&amp;P Global official as projecting no change in the decision for the foreseeable future, even if Harrisburg passes a budget by June 30 this year, as required by law.&#8220;That means the 57 districts and community colleges that had been taking advantage of the program are in a tighter position, and will either be locked out of the market entirely or forced to pay higher interest rates,&#8221; Keystone Crossroads reported, adding &#8220;these districts include Philadelphia, Reading, Coatesville, Hazleton and Erie.&#8221;Not so, Hazleton Area Business Manager Anthony Ryba said.&#8220;The loss of the intercept program does not impact the district with respect to borrowing,&#8221; Ryba said via email. &#8220;The district itself currently has an excellent rating of A1.&#8221;Ryba said the program provided &#8220;a form of security to bond holders.&#8221; Some districts that relied heavily on that security, such as Penn Hills and Philadelphia, could be &#8220;severely impacted&#8221; because they are already financially distressed, he added, but Hazleton Area&#8217;s independent rating assures no problems if the district has to borrow.Dallas Business Manager Grant Palfey had a similar response. &#8220;We are rated outside the state,&#8221; Palfey said in an email, adding Dallas has a higher rating than the state.Wilkes-Barre Area Career and Technical Center Acting Administrative Director Frank Majikes said the school used the intercept program to refinance bonds in 2013, but there are no plans for extensive borrowing this year, so the problems with the intercept program shouldn&#8217;t matter.&#8220;This is an indictment of the state,&#8221; Majikes said, &#8220;not of us.&#8221;<div class="metaInfo"><bylineMeta>By Mark Guydishmguydish@www.timesleader.com</bylineMeta></div><div class="metaInfo"><shirttailMeta>Reach Mark Guydish at 570-991-6112 or on Twitter @TLMarkGuydish</shirttailMeta></div>

Apparent collapse of state program has scant impact on local schools