Short-term borrowing may soon be a way for the university to function while waiting to receive its state-appropriated funding.

The board of trustees approved an amendment to its governing policies at its Jan. 22 meeting. Before the policies can be changed, the amendment must be brought before the state legislature.

“We would have to have the authority from the legislature first,” said President Bill Perry. “The legislation will say that the board of trustees will have the authority.”

The university needs a legislator to bring the bill before the Illinois Senate or House in order to amend the statute it is governed by, said Robert Miller, general counsel for Eastern.

“At this time I am not aware that a bill similar to the (Southern Illinois University-Carbondale) bill has been introduced on behalf of EIU,” Miller said. “Once introduced, there would be a first reading of the bill and it would be referred to a committee for review.”

If it is brought before legislators, the language will likely be similar to the proposed amendment at SIU.

SIU’s amendment says the board would be allowed “to borrow money from time to time in anticipation of receiving tuition, payments from the state of Illinois or other revenues or receipts of the university, also known as anticipated money; provided that the money shall be repaid within 18 months after the time the money is borrowed.”

Perry described short-term borrowing as a tool for dealing with temporary financial constraints.

“You would only borrow, or even ask the board to consider borrowing, if we knew the state owed us money and it just was slow in coming,” Perry said. “We would know when that money came in that we could pay it off.”

If approved, the university would need approval from the board to borrow and would then go through a bidding process to chose a lender.

This amendment would only affect money borrowed on a short-term basis.

“It’s not like borrowing for a building or something, which is long-term,” Perry said.

Sarah Ruholl can be reached at 581-7942 or [email protected].