 "I think the next report that comes out
will be more comprehensive and will give greater detail of how the
College Illinois program was administered," said state Rep. Jim
Durkin, R-Western Springs. "But I'm not going to be surprised by it.
Most of this was brought to my attention in one way or another over
the past year. It's history. You can learn from history."
Durkin said he expects the report, a management audit that was
requested by lawmakers, to be released by the end of the legislative
session.
The College Illinois program, administered by the
Illinois Student
Assistance Commission, enables parents to lock in present
tuition rates and then make payments toward their children's future
tuition costs at Illinois colleges and universities.
Started in 1998, the program is not financially guaranteed by the
state. The program has 53,644 contracts with Illinois families. It
stopped accepting new contracts Sept. 30 after media reports of
risky investments, funding shortfalls and accelerated withdrawals
from the program.
Durkin said more work needs to be done to turn the program
around, but he is confident it is on the right track. He cited
changes in leadership and in the way the program invests money and
awards contracts.
"I think it was fast and loose for a number of years when the
procurement rules and the investment policy were disregarded. That's
not going to happen again," Durkin said.
Tuesday's financial audit, released by state Auditor General Bill
Holland, indicates the program's financial statements show a deficit
of $262 million.
However, the audit includes two
additional estimated deficit figures:
[to top of second column] |
The "actuarial value" method is calculated by amortizing investment
gains and losses over a five-year period, according to the audit.
The "market value" method looks at the market value of assets at a
point in time.
The deficit figures are current as of June 30, 2011.
The audit also indicates the program's cash flow is expected to
remain positive through 2021, even without taking into account
contracts sold after June 30, 2011.
A spokesman for the Illinois Student Assistance Commission could
not be reached for comment Tuesday.
Durkin said he continues to contribute to College Illinois for
his children's tuition.
"When it was created, I thought it was a good idea, and I still
think it's a good idea," he said. "I've talked to a number of
parents who've seen their children through college and are extremely
pleased with their investment and their decision to get into College
Illinois."
[Illinois
Statehouse News; By JAYETTE BOLINSKI] |
