Pennsylvania just closed a $950 million general obligation bond sale at what Department of General Services spokesman Jay Pagni said was a "very good interest rate" of 2.904 percent, even though the financial rating houses continue to warn the state about its unfunded public pension liability of over $40 billion.

"It’s there and we have to address it," Pagni said in reference to the unfunded liability. "But so far we are still managing to get good ratings and low rates."