SIU able to delay borrowing

2010-07-01T02:00:00Z SIU able to delay borrowingBY CODELL RODRIGUEZ THE SOUTHERN The Southern
July 01, 2010 2:00 am  • 

CARBONDALE - With an additional $14.4 million from the Illinois comptroller's office arriving Tuesday, SIU President Glenn Poshard said there will be much smoother sailing in the summer.

The university received $10 million from the office several weeks ago. Poshard said with the recent fiscal year 2010 payments, the university's summer and early fall is looking much better.

"We're confident of making payroll now and paying our bills through October," Poshard said.

Poshard said July and August had previously been the shakiest months financially, but with the recent payments borrowing can be put off and furloughs and layoffs look less likely, at least for now. He said the university still needs about $10 million to make it through October unscathed.

The legislation allowing universities to borrow gave a deadline of 90 days. The bill was enacted on June 8, giving SIU until the first week of September to borrow, according to SIU spokesman Dave Gross.

Should the university find the need to borrow Illinois' dropping credit ratings will bring an added headache. While the university originally hoped to pick up an interest of 1 percent or slightly more, Poshard said with the state's current rating they are now looking at 3 to 4 percent.

But with some funding coming through Poshard said should the university need to borrow, the debt should be a bit less.

"That means when we do have to borrow, we'll probably have to borrow less than anticipated," Poshard said.



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