|
The Association's Legislative
& Policy Priorities
Increase Flexibility in the
Selection of Trustees
Since 2000, the state colleges and
universities have been authorized to have up to three
out-of-state residents serve as trustees, provided they
are alumni of the institution. As the state
colleges and universities continue to mature and attract
support from across the country, there should be more
flexibility in the choice of board members.
The Association has supported
legislation that would loosen the residency
restrictions. One bill allows that, of the three non-state
residents who may serve on each of the boards of
trustees of the nine state colleges and universities,
only one of the three would be required to be an alumnus
or alumna of the institution.
Increase Facilities
Construction Flexibility; Allow Design-Build Contracts
The State College Contracts Law
(N.J.S.A. 18A:64-52 et seq.) restricts the
ability of the state colleges and universities to enter
construction contracts that are innovative and
cost-effective. Under current law (N.J.S.A.
18A:64-76.1), the institutions typically commission an
architect or engineer to prepare drawings and
specifications under a design contract. The
institutions then select a construction contractor to
build the facility. Costs can increase because of
change orders derived from errors and omissions as the
project moves from design to construction.
It is ASCU's position that the state
colleges and universities should be able to enter
design-build contracts, under which a single entity
performs both architectural/engineering services and
construction under one contract. The design-build
method has many advantages regarding cost containment,
risk management, and timely completion of projects.
Recent development:
Legislation enacted in July 2009
provides the opportunity for colleges to partner with
private firms to build, economically, structures needed
by the colleges and universities to increase educational
and public service and help grow the economy. The
legislation suspends the State College Contracts Law for
18 months under these partnerships.
Evaluate State Higher
Education Governance Proposals Based on Effective
Trustee Governance Practices (See
Also Accountability)
Some opinion leaders have blamed the state's lack of
support for higher education and accountability problems
within higher education on the lack of a higher
education "czar." Periodically, there are
legislative proposals to exert more central control on
institutions from Trenton.
State colleges and universities have made significant
accomplishments under the autonomy they received
beginning over two
decades ago. However, they do recognize the need to
provide the public assurance that dollars are well
spent. The state colleges and universities have
explained to state leaders and the public, through the
media and face-to-face meetings, accountability
practices they have put in place, ones which are modeled
on national best practices. They have also voiced
the need for steps to assure accountability to Trenton
without the political influence that often comes with
central control.
Each legislative proposal to
centralize governance is analyzed on the basis of
consistency with well established standards of effective
and accountable trustee governance. With this in
mind, ASCU supports the amendments made to Senate Bill
No. 1609 and Assembly Bill No. 3245.
Enact Workers' Compensation
Reform Making State Colleges and Universities
Independent of Treasury's Bureau of Risk Management
Treasury's Bureau of Risk Management
administers the state colleges' and universities'
workers' compensation claims, and the Attorney General
represents the institutions before the workers'
compensation court. The Bureau charges the
institutions quarterly for money paid by the state to
administer their workers' compensation claims.
These payments, along with Sick Leave Injury payments,
have continuously escalated and have become a serious
financial concern.
The state colleges and universities
have insufficient administrative control over this
system. Moreover, the institutions often receive
insufficient information about their workers'
compensation claims.
Consistent with the autonomy granted
since 1986 over fiscal and personnel matters, it is
ASCU's position that the state colleges and universities
should be allowed to manage their own workers'
compensation program through a risk management fund
modeled on the one established by the county colleges in
1985. The institutions would obtain necessary
services while minimizing their expenses, and the state
would no longer need to administer the state colleges'
and universities' claims.
Examine the Colleges'
Infrastructure Needs
The state and its universities can
create, immediately, a blue-ribbon study panel to
examine the infrastructure needs of the state's public
colleges and how these needs could be met through
innovative funding approaches. The panel should
review different funding models, especially private
partnerships to meet the growing needs for construction
and preservation of campus buildings. Such funding
models should converge with overall state needs.
This group or another can be charged, too, to recommend
how to extend the power of university research and
professional education, in partnership with business and
government, to discover improvements in the fields of
teaching, nursing, environmental sustainability and
transportation, all very important to New Jersey's
future.
Justification to provide facilities funding
includes unprecedented demand, inadequate current
capacity, and $5.8 billion statewide in capital needs.
Not since 1988, has there been a general obligation bond
for all the state's higher education facilities needs.
A record number of 100,000 students
are enrolled at New Jersey's colleges and universities.
This is about 20,000 more than 10 years ago, and will
likely remain at this level. Between 2000-2001 and
2005-2006, the number of public high school graduates in
New Jersey increased 18.3%, the 5th highest in the
country. The number of graduates -- about 90,000
-- will remain virtually unchanged through 2018-2019.
New Jersey has the highest percentage of high school
students graduating in four years, and the highest
percentage attending college immediately after
graduation.
Reauthorize Revolving Funds
for Campus Infrastructure Needs
There is currently over $500 million
in critical infrastructure needs at senior public
institutions.
Bond funds for New Jersey (senior)
public institutions approved over 15 years ago were
intended to be revolving funds, and they should be
renewed:
-
1993 Equipment Leasing Fund (ELF)
of $100 million for scientific, technical, computer,
communications, and instructional equipment.
-
1994 Higher Education Facilities
Trust (HEFT) of $220 million to finance
construction, reconstruction, development,
extension, and improvement projects for
instructional, laboratory, communications, and
research facilities.
In the 2004-2005 legislative session,
Senate Bill No. 1928 would have renewed HEFT and
increased the amount of the funds to $350 million.
A similar bill should be enacted.
Make Accountability
Improvements, But Not a Big Bureaucracy
Legislation such as Senate Bill No.
1609 follow up on recommendations made by the
Association to the State
Commission of Investigation. The Association
supports legislation that will ensure greater
accountability and address legislative concerns without
entailing regression to bureaucratic control and its
higher costs.
One of the state colleges and
universities' suggested approaches to ensuring
accountability includes implementing Sarbanes-Oxley best
practices (already in place at all nine institutions)
and strengthening the appointment and support for
effective boards of trustees.
Restore Higher Education
Incentive Funding
The Higher Education Incentive
Endowment Program was established in September 1999 to
build partnerships between private business leaders and
New Jersey's colleges and universities. Under the
program, the state provided matching dollars for
significant donations and endowment contributions.
The state's institutions of higher education and their
students greatly benefitted from this program.
Four-year public colleges and universities received a
100% match over 10 years for endowment contributions of
at least $1 million, and a 10% match for donations of at
least $1 million. Two-year colleges and
independent colleges and universities also received
benefits for securing significant endowment
contributions and donations. Institutions
receiving Higher Education Incentive funds earmarked them
to help stabilize tuition and provide scholarships,
attract talented faculty, and build new classrooms and
research facilities.
Funding for this program has been
eliminated.
ASCU supports restoring this program with its added
benefit of helping public institutions help themselves
in fundraising and expanding their endowments.
|
