ORONO (AP) – University of Maine System trustees have approved internal loans totaling $9.5 million to two campuses that have been struggling to balance their budgets.

An $8.2 million loan will go to the University of Southern Maine, which has operated in the red for four years. USM blames its deficit on enrollment levels that fell short of projections and unexpected increases in various costs, including fuel.

At their meeting in Orono, trustees also approved a $1.3 million loan to the University of Maine at Machias. UMM said its budget woes stem from revenue shortfalls in self-supporting facilities such as residence halls and a childhood learning center.

Both loans are to be repaid over four years, beginning July 1, 2009.


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