* Sigh…
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.”
* There was a big rally at Northeastern today…
- AC - Thursday, Feb 25, 16 @ 4:47 pm:
If this is winning, I think I’d prefer failure.
- Anonymous - Thursday, Feb 25, 16 @ 4:50 pm:
I’ve never seen the Governor actually start doing his job instead of traveling all around the state using the media and his press secretary as his mouthpiece. He wasn’t elected to drive the state into the ditch. I know several students are going to be homeless here shortly because of Rauner.
- 47th Ward - Thursday, Feb 25, 16 @ 4:53 pm:
===“Liquid reserves are expected to be exhausted by the end of the fiscal year.”===
Next month Eastern, like all Illinois universities, will be sending out letters to incoming Freshmen, the Panther Class of 2020.
There is a 50-50 chance that anyone accepting admission to Eastern in that class will find the doors locked when they arrive on campus in August. So who in their right mind would apply to or enroll at Eastern? And if their applications tank and enrollment falls precipitously, as it almost certainly will, then the whole operation comes crashing down.
No state funding this year means less tuition revenue next year, and so on. Classic death spiral stuff.
Heck of a job Raunie.
- Oswego Willy - Thursday, Feb 25, 16 @ 4:55 pm:
Charleston,
Rauner and Reggie Phillips thinks you are expendable. By allowing EIU to fall into such dire crisis, both Rauner and Phillips are proving, “Charleston, good luck”
Hyperbole? Nope…
@RonSandack: I’m frustrated 2, but taking steps towards reforming IL more important than short term budget stalemate. - Ron Sandack, 9/28/15
This is purposeful to Charleston, by Rauner and by Phillips.
Leverage, purposeful, a shame.
Do not mistake this for anything then what it is….
Rauner and Reggie Phillips turning their back on Eastern Illinois University.
Period.
- Because I said so... - Thursday, Feb 25, 16 @ 5:03 pm:
This sickens me and is absolutely outrageous.
- How Ironic - Thursday, Feb 25, 16 @ 5:07 pm:
Well the good news is that Gov Bruce “Workin’ Hard at Hardly Workin’” doesn’t use email. So he won’t be distracted by any pesky students, faculty, or irate parents shooting ‘arrows’ at him while he ruins the rest of the state.
- That Guy - Thursday, Feb 25, 16 @ 5:08 pm:
Interesting that the Higher Ed community has AFSCME fronting their battle. Surprised they would want to be roped in with the other ongoing fights.
- AnonymousOne - Thursday, Feb 25, 16 @ 5:11 pm:
Well, these kinds of things surely don’t do too much for the attractiveness and the vitality of Illinois does it? So much for whining about out migration. Who in their right mind would be killing themselves to move to this place?
- Ares - Thursday, Feb 25, 16 @ 5:11 pm:
Every NEIU, NIU, EIU, and State-university student needs to register to vote. Rallies are talk, voting is action.
- Reality Check - Thursday, Feb 25, 16 @ 5:13 pm:
AFSCME represents thousands of university employees statewide. Why in the world would AFSCME members - and IFT, IEA, SEIU and other union members who work at universities - not stand up for themselves and their institutions alongside the students they serve?
- Norseman - Thursday, Feb 25, 16 @ 5:19 pm:
Alums need to spread the word too!
- Stumpy's bunker - Thursday, Feb 25, 16 @ 5:25 pm:
I know some of the small retail business people around Charleston. They’re worried sick.
Rauner supposes them to be in his base support.
Not happenin’.
- sal-says - Thursday, Feb 25, 16 @ 5:32 pm:
Again. Where does it end? How far does 0.01%’er raunner have to drag down and destroy IL before some sanity comes back to politics here? So far, the ‘Decider in Chief’ IS A TOTAL FAILURE.
- wordslinger - Thursday, Feb 25, 16 @ 5:42 pm:
–Interesting that the Higher Ed community has AFSCME fronting their battle.–
For crying out loud, who do you think “AFSCME” is — Martians?
They’re citizens who work at the schools and live and raise families in the communities.
Why wouldn’t they be “fronting” when their communities are under attack by their governor?
- burbanite - Thursday, Feb 25, 16 @ 5:46 pm:
I just talked someone out of Eastern for the reasons 47th ward stated. This is ridiculous and I truly hope March 15th brings good news.
- Stumpy's bunker - Thursday, Feb 25, 16 @ 5:51 pm:
==Rallies are talk, voting is action.==
Vote accordingly, and bring registered-voter friends with you; Illinois primary, March 15.
Many of our legislators are joining the bandwagon of disregarding their constituents; voting is all we got!
- There is power in a union... - Thursday, Feb 25, 16 @ 5:52 pm:
“Interesting that the Higher Ed community has AFSCME fronting their battle. Surprised they would want to be roped in with the other ongoing fights.”
Afscme members work at U of I, NIU, and NEIU. Members at Neiu were laid off last year…
- clifton yankmaster - Thursday, Feb 25, 16 @ 5:53 pm:
So very sad.And he does not care because his kids are fine and certainly above any student at a public state university . Short term pain? No .Total decimation of students, social services, and the state. When does it end?
- jerry 101 - Thursday, Feb 25, 16 @ 6:01 pm:
I just spun through all the state universities 6/30/15 financials and its dire. If you compare total cash and investments to the 2015 state appropriations revenue, a lot of these schools are in trouble. WIU and GSU look to be in about as much trouble as NEIU. Only U of I and ISU seem to have enough cash and investments to ride out another year without appropriations and MAP revenues. And if enrollment were to crash due to students being afraid their universities could close during the 16-17 school year, then we could be seeing the collapse of a lot of institutions in very short order.
- PublicServant - Thursday, Feb 25, 16 @ 6:05 pm:
We’re coming for you Bruce. #winning
- cdog - Thursday, Feb 25, 16 @ 6:07 pm:
Rauner has essentially just closed EIU.
What else will he watch be destroyed just so he can claim he has destroyed labor?
1%ism is truly the disease of this era.
- Oswego Willy - Thursday, Feb 25, 16 @ 6:14 pm:
===Rauner has essentially just closed EIU.===
While that’s true, think bigger.
This is the destruction of Charleston, IL.
Charleston will be a shell of itself with its largest employer, and civic identity outside “calling” distance eliminated.
The University is heartbreakingly tragic.
Charleston, IL is receiving her death knell… that is as honest and real as I can be.
- jerry 101 - Thursday, Feb 25, 16 @ 6:15 pm:
cdog - at the rate things are going, he’s going to close:
CSU
EIU
GSU
NEIU
NIU
WIU
and, maybe, just maybe, SIU.
#Winning
Heckuva job, Brucie.
- JS Mill - Thursday, Feb 25, 16 @ 6:28 pm:
@FakeBruceRauner-Since when have student movements ever amounted to anything?#1970’s
Maybe it isn’t but this could be a bridge too far for Rauner.
- wordslinger - Thursday, Feb 25, 16 @ 6:36 pm:
Just to make this news extra-special depressing, here’s an analysis that shows the only counties outside the Chicago area experiencing population growth are those anchored by universities.
http://www.chicagomag.com/city-life/February-2016/Where-Is-Illinois-Losing-Population/
It shouldn’t be a shock to anyone that agriculture-based areas are continuing their 100-year trend in population decline. You just don’t need all that labor to farm or support farm economies anymore.
But to take the sledgehammer to the only institutions actually driving population growth Downstate — well, that sure is shakin’ it up.
- cdog - Thursday, Feb 25, 16 @ 6:39 pm:
Truly apocalyptic for the students, faculty, businesses, homeowners, community, etc.
Isn’t this Jim Edgar’s stomping grounds….
- JS Mill - Thursday, Feb 25, 16 @ 6:51 pm:
@Word- Oh man, you are so completely right! And yet so many down here are still supportive of Rauner. Less support than a year ago, but it is still there.
One of Rauner’s big problems is that, as intelligent as he supposedly is, he is playing Madigan’s game. I do not like Madigan or much of what he has done. But he has very little to concern himself with his district and governor’s are the big show in Illinois.
Instead of outsmarting Madigan, he is playing chicken with him. Madigan has successfully pulled Rauner down and is almost as unpopular as Madigan statewide. No biggie for Madigan, but not good for a governor. He might have money but some of his caucus don’t want to be caught dead taking it. His coat tails are getting shorter.
Rauner beats Madigan is he can make deals. Any deals. Deal making involves compromise. Moderate some of the deal breakers, make the deals and he can get ahead. It could be good for Illinois. But maybe he is just not smart enough to see that, or like others have said, maybe he just does not care.
- RNUG - Thursday, Feb 25, 16 @ 7:08 pm:
== You just don’t need all that labor to farm or support farm economies anymore. ==
Most the small / family farms I know of have a family member who works in a manufacturing or government job so they can have insurance. In some counties, that means the university. This will also hit the family farm.
- Mama - Thursday, Feb 25, 16 @ 7:10 pm:
++Ares – @ 5:11 pm: Every NEIU, NIU, EIU, and State-university student needs to register to vote. Rallies are talk, voting is action.
Every NEIU, NIU, EIU, and State-university student needs to register to vote. Rallies are talk, voting is action.++
Everyone needs to educate themselves on who they can trust, and vote according. Please do not rely on TV Ads to make your decision when casting your vote.
- Mouthy - Thursday, Feb 25, 16 @ 7:15 pm:
Looks like Rauner’s plan is to destroy the state’s institutions so he can rebuild it back in his own image. He’d do well to stay away for a mirror..
- Mama - Thursday, Feb 25, 16 @ 7:17 pm:
== jerry 101 @ 6:15 pm: cdog - at the rate things are going, he’s going to close: CSU; EIU; GSU; EIU; NIU; WIU; and, maybe, just maybe, SIU.===
Does this mean UI, UI-C & UI-S will be the only public universities in IL?
- Federalist - Thursday, Feb 25, 16 @ 7:18 pm:
I have repeated this many times> Rauner’s goal is to destroy public universities in this state.
It really is that simple.
By the way, Madigan, Cullerton and Rauner have never attended a public university.
- Wensicia - Thursday, Feb 25, 16 @ 7:30 pm:
I can’t give an opinion so I echo others here.
- illinois manufacturer - Thursday, Feb 25, 16 @ 7:32 pm:
Hopefully the deaths of CSU and EIU will be the wake up for RNUGs black flag because we will have a hole we can never dig out of it and an entire generation just sickened by this state.
- Anonymous - Thursday, Feb 25, 16 @ 7:55 pm:
Burn the village to save it mentality
- Huh? - Thursday, Feb 25, 16 @ 9:10 pm:
Dear 1.4%
The Illinois university system, up until your tenure as governor, was a power house of economic activity. However, since your insistence on your TA, the university system has undergone a retrenchment due to a lack of funding. This retrenchment will decimate the system as incoming freshman look for stablity and lower tuition costs at out of state universities.
Just wanted to say thanks for killing one of the golden geese of the state.
The People of the State of Illinois.
PS. Keep up with what you are doing. Hang in there, you are winning. /s
- dr. reason a. goodwin - Thursday, Feb 25, 16 @ 9:14 pm:
It may be too late already. Students will be going elsewhere.
- Huh? - Thursday, Feb 25, 16 @ 9:16 pm:
Pps We can’t afford to be compassionate until the TA is passed. The business friendly legislation will really grow the economy and make these universities first rate institutions. /s
Ppps. The short term pain is necessary for the long term savings. These reforms will save billion s of dollars over the next few years and get the economy growing. /s
- Hard-working Art Student - Thursday, Feb 25, 16 @ 9:30 pm:
I’m kind of in a state of shock right now. I’m finally attending a school with graduation being a year away and I might not have graduate from. I voted in the last election, for Quinn, even though I didn’t much care for him because the alternative was worse.
I was at the Step Up Speak Out rally today and I could feel the frustrations but right outside were students blissfully unaware of the situation. I wanted to scream at them. NEIU is one of those schools made for untraditional students like me and to see it teetering on the edge boils my blood.
I’m as cynical as they come but even I know when to get off my duff and do something. Why isn’t the media shouting to the heaven’s that Illinois colleges are dying? Do people hate college students so much that their willing to see whole communities be dragged into a financial blackhole? I was briefly at NIU, Dekalb is not a small town but it is a college town and so goes NIU, do goes the Dekalb-Sycamore area.
- Dee Lay - Thursday, Feb 25, 16 @ 11:06 pm:
This guv makes Nero look like a statesman.
Pardon me while I channel my Chicago Fire rage for a moment…
#RaunerOut
- Filmmaker Professor - Thursday, Feb 25, 16 @ 11:07 pm:
“By the way, Madigan, Cullerton and Rauner have never attended a public university.”
Cullerton’s niece was just in my class. They all have families you know.
- hot chocolate - Thursday, Feb 25, 16 @ 11:18 pm:
As a point to consider I offer this thought…big time pain for a couple years, then big time compromise for a year followed by a campaign that says YES it was bad but I inherited those problems. And isn’t it now sooooo much better since I cut smart business man deals to save you?
- Chicagoan Overseas - Thursday, Feb 25, 16 @ 11:25 pm:
As an alumni from an Illinois higher education institution living overseas, this is a depressing episode to witness. However, I believe the long-term strategic objectives are worth the pain to reform Illinois state governance. Madigan and Democrats are using these college students as political pawns as usual to kick the can down the road.
- Fedralist - Friday, Feb 26, 16 @ 4:32 am:
Filmmaker Professor - Thursday, Feb 25, 16 @ 11:07 pm:
“By the way, Madigan, Cullerton and Rauner have never attended a public university.”
“Cullerton’s niece was just in my class. They all have families you know.”
Their families must not be that important to them!
- I'm part of the problem - Friday, Feb 26, 16 @ 6:47 am:
#chicagoan Overseas: I’m glad you qualified you’re overseas because you’re clearly out of the loop! As Rich had pointed to in the Governors own numbers many times, if, and and that’s an impossible if, he were to get his entire turnaround agenda were still talking a point and a half of growth. So let’s say he gets some good compromises and ends up a half a point in growth, will that even cover what we’ll eventually pay in interest on the past do bills that may be close to 20 billion? Make no mistake from someone who isn’t overseas, this Governor is either perhaps the worst business man in history or perhaps this is simply a guy and his buddies trying to take some revenge for years of paying higher wages than he wanted to. And I unfortunately voted for him.
- Oswego Willy - Friday, Feb 26, 16 @ 7:32 am:
===Madigan and Democrats are using these college students as political pawns as usual to kick the can down the road.===
Golly, for a Chicagoan overseas you have the Raunerite talking points down cold.
Maybe you’re from a call center of Rauner’s that outsourced jobs.
EIU and CSU is the willful destruction of Bruce Rauner, including Charleston, IL.
Governor Rauner is choosing this.
Madigan and Cullerton aren’t closing either school.
“Please learn”
- wordslinger - Friday, Feb 26, 16 @ 7:34 am:
–As an alumni from an Illinois higher education institution living overseas, this is a depressing episode to witness. However, I believe the long-term strategic objectives are worth the pain to reform Illinois state governance. Madigan and Democrats are using these college students as political pawns as usual to kick the can down the road.–
What sea is that you’re living over? The Sea of Tranquility?
Here’s the situation on Planet Earth:
Last May, the General Assembly passed an appropriation to fund higher ed, just as every General Assembly has since about 1857 when ISU opened.
The governor vetoed that appropriation in full and in the eight months since has made no effort to provide a dime in funding for higher education.
The governor’s position, as reflected in his actions, is if the One True Way (whatever that is today) is not taken immediately, then higher education in Illinois is not worth having.
Let me ask you something: if you have to completely misrepresent a situation to justify your position, as you have here, is the position worth having? Or are you just one of those clever Frat Boys who think the spin is the thing, in and of itself?
By the way, you’re meaningless word salad is a little off: it’s not “long-term strategic objectives”; it’s “structural reforms.”
But you’ve been off-planet, I’m sure you’ll be forgiven.
- Anonymous - Friday, Feb 26, 16 @ 7:39 am:
Dear IBHE, speak up.
- Ducky LaMoore - Friday, Feb 26, 16 @ 7:43 am:
How many downgrades does this make?
- Carhartt Representative - Friday, Feb 26, 16 @ 7:52 am:
====Madigan and Democrats are using these college students as political pawns as usual to kick the can down the road.====
Speaker Madigan and the corrupt universities he controls
- Earnest - Friday, Feb 26, 16 @ 7:52 am:
>Most the small / family farms I know of have a family member who works in a manufacturing or government job so they can have insurance. In some counties, that means the university. This will also hit the family farm.
That’s good. We want to “starve that beast” and see some mergers and acquisitions in the area of farming as well as well as universities and social services. /snark?
- Ryan - Friday, Feb 26, 16 @ 8:05 am:
We’re witnessing the deliberate and systematic destruction of higher education in Illinois.
- Huh? - Friday, Feb 26, 16 @ 8:14 am:
1.4% doesn’t care about the bond ratings being lowered. Someplace the there’s a quote to that effect. I tried to find it, but couldn’t.
All 1.4% cares about is his TA. The social safety net is being torn apart. Now the higher education system is being shredded. But the TA must be passed before anything else can be addressed.
- AnonymousOne - Friday, Feb 26, 16 @ 8:16 am:
Why? What is the advantage to our state of destroying higher ed?
- Truck stop - Friday, Feb 26, 16 @ 8:19 am:
We’re going to sit and play on our smart phones and insist on productive society to pay for it all.
- Oswego Willy - Friday, Feb 26, 16 @ 8:27 am:
===We’re going to sit and play on our smart phones and insist on productive society to pay for it all.===
You typed that. I’m embarrassed for you.
- cdog - Friday, Feb 26, 16 @ 8:29 am:
MEDIA!
REPORTERS!
The citizens need to hear Mr. Rauner’s thoughtful answer to the tactical questions implied by the below quote and link. We need to hear his reconciliation of how he can be the best friend of education/economic development/population growth, but only if labor is destroyed via his poison pills.
Illinois does not need a friend like that, or anyone that supports his “arsonistic” tactic.
from Word — “Just to make this news extra-special depressing, here’s an analysis that shows the only counties outside the Chicago area experiencing population growth are those anchored by universities. “http://www.chicagomag.com/city-life/February-2016/Where-Is-Illinois-Losing-Population/
- illini97 - Friday, Feb 26, 16 @ 8:48 am:
Droppin’ g’s and stoppin’ degrees.
#winning
- illinois manufacturer - Friday, Feb 26, 16 @ 8:50 am:
The Chicago Mag story noted this is nationwide. Rural areas depended even more on manufacturing. That decline has occured nationwide because of bad trade policies as well as tecnology and consolidation which the TA is irrelevant. Gov. TA will wipe out downstate in the GA next redistrict.
- Name Withheld - Friday, Feb 26, 16 @ 8:51 am:
===Rauner’s goal is to destroy public universities in this state.===
No - Rauner’s goal is to have Illinois remade in his image. The dismantling of the social safety nets. The Darwinian process the universities are going through. All of these are symptoms of the disease, not the disease itself.
It’s like a medieval siege: all he was to do is starve them out. And the best part is - he has to do nothing, beyond taking steps to hinder relief efforts, in order to achieve his goal.
Let’s say Illinois goes four years without a budget. The only institutions (social service, higher education, you name it) left standing will be the ones that either become self-sustaining or become subsidiaries/supported by the private sector. It achieves goal of higher education reform by the simple expedient of waiting. Time is on his side in this. And, as he said, he’s not beholden to anyone because he doesn’t need money. Truer words haven’t been spoken - he is not beholden to a single citizen. He can leave this state in ruins and walk away without a single consequence to himself.
- Honeybear - Friday, Feb 26, 16 @ 8:54 am:
FYI- AFSCME sent in their heavies last night. Their best organizer was there. She is a 5′1″ atom splitter who could power USS Stennis by running on a treadmill for a half an hour. I also saw several other sisters and brothers that are big movers in AFSCME. Nice to see all the planning being executed. SOLIDARITY!!!!
- GraduatedCollegeStudent - Friday, Feb 26, 16 @ 8:55 am:
===We’re going to sit and play on our smart phones and insist on productive society to pay for it all. ===
Ah yes, that argument.
Let me put this in blunt terms. If you let higher ed in this state die, there will be far fewer “makers” running around in this state.
- Illionoisvoter - Friday, Feb 26, 16 @ 9:00 am:
It’s very refreshing to see that most of the concerns are with the students, the institutions,
and the communities on this board. AS an old
cynic one asks who benefits from this turmoil?
Please tell me there is no gain in shorting, or
straddling or hedging bonds in a downdraft?
No emails, hidden appointment books. The Republicans in the House and the Senate need
to move soon before the headlights run over them.
- mokenavince - Friday, Feb 26, 16 @ 9:04 am:
In Illinois we have turned a once great state into Mississippi . We are leaderless and clueless.
Who would bring their business here? Madigan, Cullerton, Rauner = hopeless.
- Grandson of Man - Friday, Feb 26, 16 @ 9:07 am:
“However, I believe the long-term strategic objectives are worth the pain to reform Illinois state governance.”
This is it. Break people to remake them. There is a certain editorial board member who would approve of this. Since there are no hurricanes in Illinois to reap destruction and wipe away the public sector, they may as well take matters into their own hands.
- olddog - Friday, Feb 26, 16 @ 9:12 am:
Mississippi? By limiting access to higher ed, especially at schools like CSU and the regionals that are most accessible to first-generation college students, we’re turning back into the kind of hereditary aristocracy our grandparents left Europe to get away from.
- illini97 - Friday, Feb 26, 16 @ 9:28 am:
My father is an EIU alum. My brother is an EIU alum. I’ve spent a good chunk of time in Charleston, and I don’t see how it functions without the university.
As OW has pointed out, daily, Governor’s own. This is the Governor that killed our state university system. If he hasn’t gotten to yours yet, just wait. It’s coming.
- illini97 - Friday, Feb 26, 16 @ 9:30 am:
And remember, Radogno thinks this is a good thing.
Why would we need all this higher education? Consolidation is the future!
- Anon221 - Friday, Feb 26, 16 @ 9:33 am:
Could it happen in your area? Consider the maps of our places of higher learning, and then think on what could happen to the spheres of influence those entities have on local communities, schools, businesses, and PEOPLE-
http://www.agriculturaleducation.org/LinkPages/PostSecondary.asp
http://www.ibhe.org/Colleges%20and%20Universities/institutionList.asp?S=1
- DuPage - Friday, Feb 26, 16 @ 9:49 am:
My blood pressure just went up 10 points.
- Huh? - Friday, Feb 26, 16 @ 10:56 am:
A destroyed higher education system is not a bug. It is a feature. Thanks 1.4%.
- Arthur Andersen - Friday, Feb 26, 16 @ 11:00 am:
Honeybear, what a “glowing” tribute to your colleague. Good to hear the “A-Team” is on board. Thanks for keeping us old guys informed.
AA
- Anonymous - Friday, Feb 26, 16 @ 11:06 am:
More victims of Madigan’s ‘epic struggle’ with Rauner. Thank you both for nothing.
- AnonymousOne - Friday, Feb 26, 16 @ 11:43 am:
What will it take to push back against this movement?
- anonymous2 - Friday, Feb 26, 16 @ 3:04 pm:
=== Anonymous - Friday, Feb 26, 16 @ 7:39 am:
Dear IBHE, speak up.===
IBHE has no voice. They are an impotent agency. As long as their employees get paid their bloated salaries they don’t give any more of a damn about the fate of higher education or universities than Rauner.