Aug. 11--The state's Blue Ribbon Advisory Committee is proposing $12 million in loans be made available to South Carolina State University.
University trustees approved the plan's concept Monday with the understanding that the university can have appropriate discussions with Senate President Pro Tem Hugh Leatherman and the committee.
The plan's details were not immediately available, but trustees said it would make $12 million in loans available to the university.
S.C. State would receive $6 million upon approval of the plan, plus $4 million the next year and $2 million the year thereafter.
The source of the funds has not been identified.
S.C. State, which has been operating on a deficit for some years, called on the legislators for help in February after President Thomas Elzey told the S.C. Budget and Control Board that the institution was at risk of ending fiscal year 2014 with a deficit of more than $13 million. Elzey also reported that the institution did not have funds to pay its monthly bills.
Legislators agreed to bail out the university with the stipulation that the advisory committee would come up with a long-term budgetary plan for the university before funds are paid out.
If trustees approve the committee's proposal, it will go on to several legislative committees before being implemented.
The completed plan first will be sent to the Joint Bond Review Committee. Within 15 days of approval by the JBRC, the Budget and Control Board and the state treasurer will determine where the money for the university will come from.
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