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| Audit Proposed for Pre-Paid Tuition Program |
(IRN)-The Illinois House is calling for an audit of management operations and investment strategies at the state managed pre-paid tuition program.
Three weeks ago, Andrew Davis, the executive director of the Illinois Student Assistance Commission, which oversees the program, said his main goal was to invest about half of College Illinois' $1 billion in complex alternative investments and hedge funds, something State Representative Jim Durkin (R-Western Springs) calls "concerning."
"They are either going to win big or lose big, and quite frankly I don't think the parents who signed up for this program, or the grandparents, signed up for that type of investment," said Durkin.
In 2008, Davis took $12 million of the funds, which are intended to be paid out to 55,000 Illinois residents looking to lock in tuition rates now for their children or grandchildren who will go to college sometime in the near future, and invested that money into Shorebank, a community lender which failed in 2010.
Late last month, the Illinois Student Assistance Commission halted a $50 million investment.
At the House Executive Committee Thursday, Davis testified that he fully supported the resolution calling for the investigation.
"We are strong proponents of this resolution," said Davis. "We appreciate Representative Durkin and Representative Lang's initiative in calling for this review and we do…believe it is the right thing to do at this point to give assurance to all the families in the state and to the legislators who are responsible ultimately who are responsible for our oversight, that the program is in good shape, which it is."
(Source: Illinois Radio Network) |
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| 04 14 11 by Newsroom |
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