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Could State Universities Turn to Borrowing?
Colleges and universities are screaming about late state government dollars, but what are the options? State lawmakers disagree about how to fix the $735 million backlog of bills to state universities. One solution would allow colleges and universities to borrow money against expected tuition revenues and state funding.

State Rep. Mike Bost (R-Murphysboro) supports the idea. He says if universities cannot find revenue soon, they will pass tuition hikes that middle income families cannot afford. State Sen. Michael Frerichs (D-Gifford) isn’t in love with the idea, but feels universities may not have any other choice.

State Sen. Brad Burzynski (R-Clare) says he would not vote for the bill. He believes the state has too much debt already and this would only add to it. Rep. Rich Myers (R-Colchester) agrees. He has questions about how the universities would borrow the money to begin with, like whether they could borrow the full amount of operating money, or just the same amount that state government pitches in.

SB 642 would allow Southern Illinois University to borrow money in order to pay operating costs, but Eastern Illinois, Western Illinois, and Illinois State have requested the same borrowing power.

(Illinois Radio Network)
02 10 10 by Newsroom
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