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Delay in payment from state causes university system trouble

By Katelyn Seabury

Flagstaff, AZ – The Arizona Board of Regents drafted a letter to send to Governor Jan Brewer today that states the Arizona University system cannot function if the state continues to defer payments.

Last month the state was unable to pay the universities their monthly installment of about 75 million dollars from its general fund. This usually results in double payment the following month.

ABOR President Ernest Calderon said many people do not understand what these late payments and funding cuts are doing to the state universities.

There is no legal requirement that payments must by made on time however not receiving payments leaves the university's to dig into cash reserves or delay paying bills.

In fiscal years 2009 and 2010 the state has cut 231.5 million dollars from the university budget system. For Arizona Public Radio, I'm Katelyn Seabury.