Both Republicans and Democrats in the state Senate agree that loans taken out by governments, school districts and other agencies as the state budget stalemate drags should be interest free.

One would think that would be a cause for celebration, or at least a hearty huzzah amongst lawmakers. But this is Pennsylvania, where when it comes to the 2025-26 state budget lawmakers have shown a predilection to argue about even the most mundane spending items.

Predictably, that’s what happened last week. While the state House of Representatives was passing another version of a state budget that won’t get any Republican votes in the state Senate, state senators were arguing over the best way to provide interest free loans to agencies that are being hurt by lawmakers’ budget intransigence.

In a party line vote Wednesday, the state Senate passed Senate Bill 1040, which would authorize the state treasurer to waive interest charges on loans issued during a budget impasse and help prevent additional costs for taxpayers and communities. Under current law, the Pennsylvania Treasurer may provide investment loans during a budget impasse but must charge interest on those loans. Senate Bill 1040 would authorize the state treasurer to waive interest charges on loans issued during a budget impasse and help prevent additional costs for taxpayers and communities.

Senate Democrats backed a proposal by Sen. Lindsey Williams, D-Pittsburgh. Williams on Wednesday introduced a co-sponsorship memorandum for legislation that would use a combination of interest the state has earned by not having passed a timely budget and the Rainy Day Fund to back fill any interest accrued by any entity that receives state funding who was forced to take out loans during this budget impasse, including counties, human service agencies, non-profit agencies, childcare centers, and schools.

Ugh.

How is the budget going to be resolved if we can’t get lawmakers to come to agreement on something so simple? This is a time for some real leadership. If it’s not going to come from House Democrats or Senate Republicans, then it simply has to come from Gov. Josh Shapiro. And, if it doesn’t come from the governor’s office, then perhaps we can find a kindergarten teacher. They specialize in getting children to play nicely together.