Grade Point
The Illinois budget impasse has now spread to three universities struggling to pay bills. Moody’s cut Eastern Illinois University’s credit rating to junk territory while Northeastern Illinois University and Northern Illinois University sit one notch just above junk. All three universities are in danger of losing accreditation. More downgrades will come.
The Washington Post reports Illinois Budget Battle Leads Moody’s to Downgrade Several State Universities.
An epic budget battle in Illinois led Moody’s Investors Service to downgrade the credit rating of three of the state’s public universities late Wednesday, the latest setback for schools that have been starved of funding for eight months and now face possible accreditation challenges.
Northeastern Illinois University and Northern Illinois University had their credit ratings lowered to just above junk status, while Eastern Illinois University’s rating is now below investment grade. That means analysts consider revenue bonds issued on behalf of the school to be a credit risk for investors.
“The downgrade is driven by EIU’s increasing vulnerability to the ongoing state budget impasse given its thin liquidity, declining enrollment and high reliance on state funding,” Moody’s said in a statement. “Liquid reserves are expected to be exhausted by the end of the fiscal year.”
Moody’s has held a negative outlook on all eight Illinois universities it rates since the fall because of their diminishing cash flow. Analysts said there was no indication that Illinois would allow its public universities to borrow money during the budget impasse, despite the strain the ordeal has placed on their operations.
Universities in Illinois have not seen a dime from the state in eight months as the Democratic-controlled general assembly and Republican Governor Bruce Rauner have failed to agree on a budget. The governor has tied passage of the $36 billion budget to changes in collective bargaining rights for public employees and worker compensation, business-friendly moves he says will help turn around the state’s flagging economy. If the legislature refuses to sign on to his changes, Rauner wants lawmakers to let him make $3.5 billion in spending cuts in any way he chooses.
Rauner Holds Out For Reform
Rauner repeatedly has stated he will not sign a budget unless Democrats agree to reform. I applaud that stance.
Mike “Mish” Shedlock
All three universities are in danger of losing accreditation.
Thats fine. Obama will just return all the tuition and cancel all the loans.
So the students will owe nothing.
If you believe that you were a victim of fraud or another violation of state law at Corinthian, whether your school is open or closed, you may be eligible for debt relief based on borrower defense to repayment.
https://studentaid.ed.gov/sa/about/announcements/corinthian
Wow, that’s a brutal situation. Makes one wonder how much longer the debt Ponzi can keep going on!
Yes I agree that the comedy seems endless. At some point the money flow will stop and someone is going to blink. Its quite fitting Obama’s legacy library will be in a bankrupt state.
Universities could balance their budgets. Eliminate departments of remedial education, gender studies, black studies, sociology, fine art, pottery, physical education, turf management, political science, climate change, keyboarding, etc.
That’s the road to the end of innovation. If the U.S. produces clones of other countries, there won’t be a steve jobs who attended liberal arts school prior to travelling overseas and then returning to form apple. Economies of great innovation aren’t merely based on science and math. There are more creative and abstract components to a constantly evolving creative economy.
“Economies of great innovation aren’t merely based on science and math. There are more creative and abstract components to a constantly evolving creative economy.”
Such as Leftist Agenda? You might want to look up what happened to Ben Shapiro yesterday when he tried to speak at Cal State University in L.A. College has become a training ground for the Red Guard. Suppression of freedom of speech will not create economies of great innovation. It will shut them down.
Not so. Jobs just showed that a college education was worthless in regards to innovation, creativity, etc.
Colleges are not about education. They are about socialization, psycho-babble, etc.
Racist !!!!!!!!!!!!!!!!!!!!!!!!! (that is the best reason I could insult you for…………!!!!! Dat be Rayciss)
Black Studies. What a joke. If Black people were actually studying themselves and seeing what losers they are compared to other groups there would be an upheaval in their community and changes would be made. Unfortunately they are not being taught anything mirroring reality in these stupid programs.
I would like to see the graduation rates of these 3 Universities and what type of Majors they offer.
I would bet society could do without these 3 and they are just part of the Socialist Welfare Complex we have been warned about.
Love your moniker…. SOCIALIST WELFARE COMPLEX….
Let’s spread this through the land.
Let’s face facts. As long as the boil on the rump of Illinois, Chicago is part of it, this will continue. The population center of Chicago, overloaded with semi-literates who send delegations of semi-literates to represent them in Springfield cannot be reasoned with.
I do not know about the others but NIU is the up and coming University in Illinois. It has number one and number two departments and many top five nationally. Great nursing and education programs and a robust law school which is now on some surveys rated 1st tier.
Bankruptcy is looming. Rauner has my support. Madigan should be doing a Mussolini impersonation hanging upside down in some public square.