Wednesday, October 1, 2008

Meltdown hobbles Minnesota colleges

Some practical consequences of the meltdown and aftermath have started to appear. Time for a change?

From the Pioneer Press

22 schools face major losses, trouble making payroll, as investment fund cuts off their cash

By Doug Belden and Nicole Garrison-Sprenger

The nation's financial crisis hit home for Minnesota colleges and universities this week when an investment fund used by several to pay short-term expenses said it would close and cut off nearly all access to cash.

The move prompted David Laird, president of the Minnesota Private College Council, to warn the state's congressional delegation Monday that some of the group's 17 members would not be able to make payroll Tuesday.

"As a result of the frozen capital markets and the failure of Congress to adopt a reasonable recovery plan, many of the members of our association are at the edge of their abilities to adapt," Laird wrote.

The University of Minnesota has a "not insignificant" amount in the fund, but it is only a fraction of the university's total cash-flow management resources, said spokesman Daniel Wolter. He said it is not expected to affect day-to-day operations at the U.


Another Wolterism: "not insignificant." I guess in the spin-doctor game the usual admonition to eliminate unnecessary words is inoperative?

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