SPRINGFIELD, Ill. - Illinois universities were given authority Tuesday to borrow money so they can stay afloat while waiting for state government to pay its bills.
Gov. Pat Quinn signed a new law letting universities borrow against the money the state has promised them. He called it a financial tool to help the schools "make it through some tough, tough times."
The fiscal year ends in less than a month, but Illinois has given universities only half the money that was promised for the year - about $700 million out of $1.4 billion, said David Gross, an aide to Southern Illinois University President Glenn Poshard.
Supporters of the legislation say community colleges, high schools and grade schools can borrow money already so it makes sense to give universities the same authority.
Universities are barred from paying more than 9 percent interest, and they must repay the money within a year.
Copyright 2010 Associated Press.
