Moody's-Corbett's Cuts to Pennsylvania colleges will lower bond ratings, increase borrowing costs

[JPZenger]

http://www.post-gazette.com/pg/11076/1132576-298.stm

Moody's issued a report saying that Corbett's 50% cut in funding to state universities will result in lower bond ratings, which will result in higher interest rates for any borrowing (such as for construction and renovation projects).

Moody's also said that the universities will almost have to close some branch campuses. It is not just an idol threat. I say close the branches in the senate districts where the senators support the cuts.

[PA Democrat]

1. Job losses begin: Penn State halts construction worth millions

Fallout over Gov. Tom Corbett's proposed halving of money for public universities now includes a decision by Penn State University to put a hold on tens of millions of dollars in new building projects.

The university's board of trustees, meeting Friday in New York City, said it acted because the governor's proposed budget, unveiled last week, would cut $182 million or 52 percent of the university's state funding.

Trustees endorsed the selection of architects for a number of the projects but delayed final authorization needed "for any capital projects to proceed until the funding picture becomes more clear," the university said in a statement following the vote.

It called the board's action unprecedented.



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