Despite slashing $650 million each from the California State University and University of California, lawmakers also hit two systems up this summer to loan the state some cash.
Senate Bill 79 established a new investment fund for UC, CSU, California Community Colleges and the Judicial Council. Under the bill, the UC loaned the state $1 billion while the CSU fronted the state $700 million—a total of $1.7 billion in public university funds. They expect to earn a return from the state, apparently more than they get elsewhere but less than the state would have to pay Wall Street.
Source: CFA's website