Some State Schools Could See Borrowing Costs Increase if Illinois’ Budget Mess Continues

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NORMAL – It’s been nearly 2 years since lawmakers and the governor agreed on a budget and state colleges and universities have felt the pinch of cuts and missed payments.

ISU and nearly a dozen other state universities were issued a warning last Friday by S&P credit agency.

The longer Illinois’ budgetary mess goes on, the more their creditworthiness is in question.

ISU was placed on a “credit watch.”

The university’s “A” rating is still intact, but further inaction by the legislature could mean higher borrowing costs down the road.

A bright spot for the university… full auxiliary facilities.

University spokesperson Eric Jome explained… “Those would be residence halls. People paying you use those facilities. The demand for students to still use residence hall space is still high. So, our halls are full.”

ISU was previously placed on a credit watch-list several months ago.

The school’s administration stressed that the university’s upcoming decision to not raise tuition or fees didn’t play a role in the ratings.

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