Calls For Hearings And Suggests Review Of State College Autonomy Act
In the wake of recent news stories questioning fiscal controls and management at Rutgers University, Assemblywoman Dawn Marie Addiego today sent a letter to Assembly Speaker Joseph Roberts and Assembly Higher Education Committee Chairman Patrick Diegnan asking that they convene hearings to have the Legislature explore ways to increase oversight and accountability in New Jersey’s higher education community.
“Less than a year ago the State Commission of Investigation issued a report that expressed grave concerns regarding the governance and accountability in New Jersey’s institutions of higher education, ” said Addiego, R-Burlington. “Thus far the Legislature has not adequately addressed these concerns as highlighted by the recent questions surrounding fiscal management at Rutgers.”
Addiego suggested that if adequate protections for the taxpayers cannot be put in place at the state’s higher education institutions, the Legislature should look at repealing the State College Autonomy Law approved in 1986.
A confidential internal audit issued in February criticizing the Rutgers athletic department’s fiscal controls – including hundreds of thousands of dollars in off-the-books spending that never appeared in the Rutgers budget – was made public last month.
The audit challenged the accuracy of some of those expenses and claimed that there were gaps in the athletic department’s oversight and documentation of how those monies were being spent. Last year Rutgers cut out six sports at the school and officials told legislators the sports were being cut due to a lack of adequate funding.
In recent weeks it has been reported that the fundraising effort that was intended to raise private dollars to support the expansion of Rutgers Stadium has failed to generate the funding needed to cover a $30 million gap in the project’s financing.
The October 2007 State Commission of Investigation (SCI) report, “Higher Education: Vulnerable to Abuse, ” stated that an investigation had “revealed an entire system vulnerable to problematic governance, serious shortcomings in oversight, accountability and transparency and outright violations of the public trust.”
Addiego, a member of the Assembly Higher Education Committee, stated that while there was a hearing on the issue earlier this year, it does not appear that any definitive action has been taken to tighten the management of the state’s higher education system.
“The state invests more than $1.5 billion in public higher education and the state taxpayers need to know their money is being managed properly, ” Addiego said. “We need to explore what steps can be taken to ensure better fiscal management at our public colleges and we should enact those safeguards as soon as possible.”
A copy of the letter is attached.
NEW JERSEY GENERAL ASSEMBLY
STATE HOUSE
PO BOX 098
TRENTON, NEW JERSEY 08625-0098
(609) 292-5339
September 22, 2008
Honorable Joseph J. Roberts
Speaker
New Jersey General Assembly
P.O. Box 098
Trenton, New Jersey 08625-0098
Honorable Patrick Diegnan
Chairman
Assembly Higher Education Committee
908 Oak Tree Avenue, Unit P
South Plainfield, New Jersey 07080-5100
Dear Speaker Roberts:
This letter is to request a special meeting of the Assembly Higher Education Committee to discuss issues of accountability and fiscal mismanagement at our state institutions of higher education and what legislative steps can be taken to address those concerns.
I am sure you have been as distressed as I to read the recent news accounts of possible mismanagement and improper fiscal oversight in the athletic department at Rutgers. Less than one year ago the State Commission of Investigation (SCI) issued a report, “Higher Education: Vulnerable to Abuse, ” stating that an investigation had “revealed an entire system vulnerable to problematic governance, serious shortcomings in oversight, accountability and transparency and outright violations of the public trust.”
Unless we can assure the taxpayers that adequate financial protections can be put in place at the state’s higher education institutions, I believe this committee, and the Legislature was a whole, should look at repealing the State College Autonomy Law approved in 1986.
I know that you share my interest in making sure that New Jersey has the best system of higher education in the United States and I hope you agree that a crucial component of reaching that goal is for the administrations at our institutions of higher education to exercise proper fiscal management and oversight of operations at the schools. I am concerned that this is not happening and believe it is time for the Legislature to step in and take action. I hope you will join me in this effort.
Thank you for your consideration of this request. I look forward to your response.
Sincerely,
Assemblywoman Dawn Marie Addiego
8th Legislative District
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