Columbia, SC (WLTX) - The South Carolina Budget and Control Board has approved a loan to South Carolina State University to help it pays its obligations as it works to come out of a financial mess.
The board voted Wednesday morning to approve the $6 million loan.
Governor Nikki Haley suggested that amount for the school, which she says can be used to guarantee that the school can make debt service payments and give money to vendors. Just last week, the school said it was set to run out of money soon.
As a condition of the loan, the school must agree to a review of its past economic policies and use a portion of the money to get expert advice on its financial aid practices.
During the meeting, Florence Senator Hugh Leatherman expressed concerns about giving SC State the loan, and voted against the proposal.
Earlier this year, SC State President Thomas Elzey asked the state for $13.6 million to help with the school's cash flow problems, caused by overspending and declining enrollment. A few weeks ago, a state inspector general's report found that school officials misused funds for years to cover deficits.
Lawmakers could take up the rest of the funding Elzey requested in the coming weeks. He called Wednesday's actions a lifeline, but says they're looking to "get out of the water."