Birmingham-Southern sues Alabama state treasurer, says college was wrongfully denied loan
The lawsuit contends Treasurer Young Boozer wrongly denied the college a loan from the program created this year to provide a financial lifeline to the institution. The 167-year-old college will likely close without emergency relief from the court, lawyers wrote in the lawsuit filed Wednesday.
MONTGOMERY, Ala. (AP) — Birmingham-Southern College has filed a lawsuit against Alabama’s state treasurer for denying a loan from a program created by lawmakers to help the historic but financially troubled private college.
The lawsuit contends Treasurer Young Boozer wrongly denied the college a loan from the program created this year to provide a financial lifeline to the institution. The 167-year-old college will likely close without emergency relief from the court, lawyers wrote in the lawsuit filed Wednesday.
“It is an undisputed fact that Birmingham-Southern College has met each and every requirement of the law,” Birmingham-Southern President Daniel Coleman said in a statement.
Boozer’s office did not immediately respond to a telephone message seeking comment on Friday.
The Alabama Legislature this year created the Alabama Distressed Institutions of Higher Education Revolving Loan Program after Birmingham-Southern officials, alumni and supporters lobbied for money to help the college stay afloat. State officials had expressed concerns about giving a bailout to a private college, but supporters of the loan legislation said it was a way to provide bridge funding while the college worked to shore up its finances.
The college is asking the court for an emergency order to approve the loan and disburse the first $8.8 million by Nov. 6, with another installment of $7.2 million by Feb. 1
Montgomery Circuit Judge James Anderson held a hearing Thursday and scheduled another for Wednesday. Al.com reported that during the hearing Anderson questioned whether he has the authority to order the treasurer to approve the loan, saying the law appears to give discretion to the state treasurer. The Alabama attorney general’s office also argued that Boozer’s office has immunity from the lawsuit.
Alabama regulators approve two-year electric rate freeze and two solar projects for a Meta data center
Critics say the rate freeze will only delay financial burdens on Alabama Power customers while preserving a high profit rate for the utility.
Auburn tabs USF’s Alex Golesh as its next coach, replacing Hugh Freeze on the Plains
The 41-year-old Golesh, who was born in Russia and moved to the United State at age 7, is signing a six-year contract that averages more than $7 million annually to replace Hugh Freeze. Freeze was fired in early November after failing to fix Auburn’s offensive issues in three seasons on the Plains.
Alabama Power seeks to delay rate hike for new gas plant amid outcry
The state’s largest utility has proposed delaying the rate increase from its purchase of a $622 million natural gas plant until 2028.
Former U.S. Sen. Doug Jones announces run for Alabama governor
Jones announced his campaign Monday afternoon, hours after filing campaign paperwork with the Secretary of State's Office. His gubernatorial bid could set up a rematch with U.S. Sen. Tommy Tuberville, the Republican who defeated Jones in 2020 and is now running for governor.
Scorching Saturdays: The rising heat threat inside football stadiums
Excessive heat and more frequent medical incidents in Southern college football stadiums could be a warning sign for universities across the country.
The Gulf States Newsroom is hiring an Audio Editor
The Gulf States Newsroom is hiring an Audio Editor to join our award-winning team covering important regional stories across Mississippi, Alabama and Louisiana.
