The State of Illinois has repaid nearly all of the $464-million it owed to its public universities from the 2009-10 fiscal year, which ended on June 30.
In the short term, that means that those institutions are unlikely to have to borrow money to cover their expenses, according to an analysis by Moody's Investors Service, which rates seven of the state's nine public universities. The universities were authorized by legislation passed this year to borrow money to cover the state's unpaid appropriations.
In the longer term, however, the state's underlying fiscal problems mean that the universities could still end up having to borrow money to cover expenses in the current fiscal year, the credit-rating agency said.
"Regardless of these recent payments by the state, we maintain a negative outlook for all of Illinois's rated public universities, reflecting our continued concerns over the state's fiscal challenges and the subsequent implications for amount and timing of university appropriations," the Moody's analysts wrote. "The state's 6.2 [percent] reduction in fiscal year 2011 university appropriations highlights this concern."
Comments
1. cresent - August 30, 2010 at 04:15 pm
In spite of the budget problems in Illinois, Illinois State University President Al Bowman decided to hire the ousted Wayne State University president, Jay Noren, to do exactly nothing for the 2010-2011 academic year. The legacy of Blago lives on.
2. 1comtchr - August 30, 2010 at 04:47 pm
cresent--please check your facts before making allegations. Jay Noren has not been hired by Illinois State and he is not being paid by Illinois State. He is on sabbatical from Wayne State and is being paid ONLY by Wayne State.
3. cresent - August 30, 2010 at 05:23 pm
Sorry, there, 1comtchr, but the local paper in Bloomington reported the following: "He'll be spending that time as a visiting professor at Illinois State, said Thomas Reynolds, Wayne State spokesman.
It's unclear what Noren will teach this fall at ISU, but Groves expects it to be interdisciplinary." Although I don't know his teaching schedule, or if there even IS a teaching schedule, I do know that he's paid by Illinois State.
4. 1comtchr - August 30, 2010 at 05:40 pm
No cresent--you don't know that because it is simply not true. He is a visiting professor being paid by Wayne State. Please try to let that one simple fact get through to you.
5. cresent - August 30, 2010 at 05:52 pm
Illinois State has a history of creating positions for spouses. In fact, two of the VP's spouses were given positions without posting positions or interviewing. We simply cannot be surprised that the State of Illinois is bankrupt.
6. 1comtchr - August 30, 2010 at 08:28 pm
cresent--so instead of just admitting you are wrong, you've added a second inaccuracy. You are now 0 for 2. What you stated is once again wrong. Again, please check your facts.
7. cresent - August 30, 2010 at 08:39 pm
I do stand corrected. Illinois State has hired the wife of the President, the wife of the Assistant to the President, and two Vice Presidents. The count continues and the state, meanwhile, continues toward bankruptcy.
8. 11245658 - August 31, 2010 at 12:14 am
cresent, President Bowman's wife has worked at ISU for years. Long before he was president, long before he was provost. The wife of the asst. to the president, alos wpored at ISU long before he was ever in that position. Which two VP's are you referring to? I'm sure I can prove you wrong there as well. Sounds to me like you have a grduge toward ISU for some reason. It's nice how you bash Jay Noren for coming to his wife's side while she battles cancer. Nothing but class there, buddy.