Yesterday, the Southern Illinois University Board of Trustees approved a resolution authorizing short-term borrowing for SIU. This was pursuant to Governor Quinn's signing into law a bill which permits Illinois public universities to borrow against anticipated state appropriation funding.
The State of Illinois currently owes SIU more than $106 million of FY2010 operating appropriations. It is expected that SIU may borrow up to $75 million this summer.
Yesterday's event is good news for SIUE as it will allow the University to meet payroll at least throughout the summer. With respect to our FY2011 appropriation, the Governor has been sent a budget by the Legislature but he has not signed, pending resolution of the need for $3.7 billion in borrowing for the pension funds. It appears that regardless of our final FY2011 appropriation, cash flow will still remain a problem, causing us to continue to monitor expenditures carefully.
Vaughn Vandegrift, Chancellor