Not just schools feeling the pain, state to borrow $52 mill. from U of M
January 30, 2010 — 3:52pm
The state of Minnesota isn't just tapping public school reserves to manage its cash flow problems, it's also borrowing more than $50 million from the University of Minnesota.
State officials told the university it would delay a $52 million March payment until May to make sure the state has enough money to pay bills this spring, according to Standard & Poor's, a credit-rating agency. University officials do not expect delays in the April and May payments.
This comes on top of the state’s plan to withhold $423 million in payments to public schools to pay bills this spring.
The payment delay won't hurt the university's credit rating, according to S&P.
"At this time, Standard & Poor's does not believe this delayed payment will have a negative effect on the university's credit rating, although continued and sustained delays or reductions in appropriations would be viewed unfavorably," the rating agency said in a statement.
For financial geeks, S&P gives the university a strong rating of AA/A-1+/Stable.
The university received $677.1 million from the state in fiscal 2009 and expects to get $623.4 million for fiscal 2010.
A Duluth native who just barely lost Virginia's GOP gubernatorial primary said that politicians have not gone far enough in condemning the left for violence during a rally of white nationalists in Charlottesville. "I think that the left is going to try to use this as an excuse to crack down on conservative free speech," said Corey Stewart. "I think they're going to try to use this as an excuse to remove more historical monuments."