State reshuffling money to keep colleges afloat
BATON ROUGE - Louisiana's public colleges had to get a $40 million loan from the state treasury to continue paying expenses. That's because the financing used by Gov. Bobby Jindal's administration to fund higher education has been slow to arrive.
The loan request was filed this week with Treasurer John Kennedy's office, seeking "seed funding."
At issue is the way Jindal and lawmakers chose to provide much of the state funding for the schools in the $25 billion budget. They are using a patchwork of dollars from property sales, legal settlements, lease payments and other financing arrangements.
Until the dollars arrive, the state is borrowing from other places to fill the gap.
Jindal's chief budget adviser, Kristy Nichols, says she is confident the dollars will arrive. She called it "simply a timing issue."