State B&CB to dig into contingency fund for SC State financial aid

State B&CB to dig into contingency fund for SC State financial aid

COLUMBIA, SC (WIS/AP) - The state's financial oversight board has approved dipping into reserves to give South Carolina State University $12 million over three years.

The Budget and Control Board voted 3-1 Monday to take the money from tax collections coming in above expectations. Gov. Nikki Haley refused to vote, calling the decision irresponsible.

Haley says it gives the school $12 million with no accountability attached.

"If you choose to do this," Gov. Nikki Haley said, "I will not have any part of it."

Legislators will ultimately determine whether South Carolina State will have to repay any of the money.

Last week, a legislative panel approved a plan that provides the school $6 million this fiscal year, then $4 million in 2015-16 and $2 million in 2016-17. University President Thomas Elzey said the money was needed to pay their vendors.

"We will comport ourselves properly and manage those funds accordingly," Elzey said.

Normally, the budget board must approve loans and their conditions. But a clause in the 2014-15 budget removed that final step in this case.

Earlier this year, SC State requested more time to pay back a $6 million loan they received.

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