Pa.'s McCord makes up mind on $650M bond issue

HARRISBURG, Pa. (AP) — State Treasurer Rob McCord is signing off on a taxpayer-financed bond issue this month, although at a lower amount than the $1 billion initially sought outgoing Gov. Ed Rendell.

A spokeswoman for McCord and a top aide to Rendell said today that McCord has agreed to approve a bond issue of $650 million.

Rendell’s chief of staff Steve Crawford says Rendell can live with the compromise and that Gov.-elect Tom Corbett will need to issue more bonds in the spring.

McCord was to speak to reporters later today.

The decision comes after several weeks of lobbying by Rendell for a $1 billion bond issue that he says is crucial to keep money flowing to public improvement projects that are under contract or construction, such as bridges, prisons and hospitals, while interest rates are favorable.