Chicago's South Side College May Go Broke Over State Budget War
- Chicago State University may run out of cash within months
- Record stalemate holds up aid that's lifeblood of the school
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A university in Chicago’s South Side is on the brink of running out of money as soon as March because of Illinois’s budget impasse, providing the most prominent example yet of the consequences of the seven-month political standoff.
Chicago State University, a 5,200-student institution founded in 1867, is considering drawing up a financial exigency plan, equivalent to college bankruptcy, as soon as next month, according to Tom Wogan, a spokesman. The move would be a first step to keep the school afloat as it hemorrhages cash to cover the loss of state funds. All options are on the table to get through the current semester, including missing payments on $12 million of outstanding tax-exempt bonds, he said.