Dive Brief:
- The Illinois legislature is still stuck in opposition with Gov. Bruce Rauner on the state’s budget, but the threat that state schools will not be able to keep their doors open much longer could force a deal.
- The Chicago Tribune reports larger universities with greater resources have been able to weather the financial storm with minimal disruption, but small schools have instituted furloughs, laid off employees, cut athletic programs, instituted new fees, and faced credit downgrades, making the prospect of borrowing even worse.
- While schools have tried to remain optimistic as they recruit for next year’s classes, some have acknowledged the prospect of temporary closures before the end of the 2015-16 school year if state money does not come through.
Dive Insight:
Illinois colleges and universities have had to dip into savings to cover the costs the state usually pays for, including some scholarships they hope they’ll be reimbursed for once the budget is approved. The original deadline for a deal was May 31. The state’s newly elected Republican governor, however, vetoed a budget negotiated by Illinois’ Democrat-controlled legislature. Rauner originally suggested slashing the state’s higher education budget by nearly a third. Democrats, on the other hand, approved a budget with a 6% cut.
With the prospect of a cut guaranteed, administrators have been forced into a waiting game to see by how much.