IU may rely on savings if state shuts down-WEB ONLY

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Indiana University will tap into its savings account to keep classes running if lawmakers don’t pass a state budget by tomorrow and state government shuts down.

IU officials say the school has $200 million to $300 million in cash reserves that it can use to continue operations in July and August if necessary. The university said summer classes will continue and its 17,000 employees will still get paychecks even if lawmakers don’t pass a budget by the time the current one expires tomorrow.

IU got about $600 million in state support during the last school year. Officials are worried that stream of cash would dry up if state government stops running for lack of a budget.

State money makes up less than a quarter of IU’s $2.7 billion operating budget.

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