Stopgap means WIU can avoid technical default - Capitol Fax

The stopgap budget will prevent Western from having to dip into restricted Auxiliary Facilities Systems funds to meet operational expenses — if the state comptroller sends payments out in the next 20 days, Bierman noted. The university was scheduled to begin using restricted AFS funds, which are collected through residence hall revenue and student fees to support campus facilities built with and maintained by funds from the selling of tax-exempt bonds. Using AFS funds would have been a technical default on the university’s bond payments, and dipping into the AFS pot requires the university to notify bond holders within 10 days. The decisions Western has made during the state’s fiscal crisis will not change, according to Bierman. Amid the crisis, the university has initiated layoffs and mandatory furloughs for non-negotiated employees. The university has given 105 layoff notices to non-faculty employees and about 45 notices to faculty. A few non-faculty employees have been brought back due to retirements, Bierman said. http://capitolfax.com/2016/07/06/stopgap-means-wiu-can-avoid-technical-default/