New Jersey Association of State Colleges and Universities committed to college opportunity for new jersey citizens

150 West State Street, Trenton, New Jersey 08608                       609-989-1100     609-989-7017 fax                   njascu@njascu.org

The Record
November 13, 2007

We Need Alternate Solutions for College Oversight

Darryl G. Greer, Executive Director

The public has a right to know that hard-earned taxpayer and tuition dollars invested in state college education are wisely spent in service to students and the state.

However, the findings of the recent State Commission of Investigation report signaling "vulnerabilities" at public universities and colleges do not justify the agency's sweeping recommendations that would create a cumbersome, expensive Trenton bureaucracy likely to increase political vulnerability.

It does not provide a good framework for moving forward.

Yet, the report's citing of the need for greater transparency and improved accountability of higher education does require the immediate and continuing attention of public colleges.

Such real problems can be effectively addressed within the context of the current New Jersey college governance structure, one which is based on strong, effective and non-partisan citizen boards of trustees.

The New Jersey Association of State Colleges and Universities convened in September and October a panel of national higher education experts and New Jersey business leaders to discuss productivity and accountability concerns.  The association will soon offer publicly some ideas about how our institutions can work as partners with state government to ensure that there is more transparency.  Some recommendations will go beyond those in the SCI report, but not in a burdensome, ineffective regulatory framework.

For example, boards can be redesigned to be more Sarbanes-Oxley (SOX) compliant.  This federal law, passed in 2002, set new standards for accountability in the private and non-profit arenas.

Working with professional accounting firms, association member colleges have already had audit committees and annual audits, shared with the state by law.  Most have adopted national standards of good practice based on SOX.  Still more can be done, such as strengthening internal audit processes and providing trustee audit committees with more information.

High Debt

We know that New Jersey's state colleges and universities carry high debt compared to peer schools in other states.  This is mainly because the state has failed to meet its funding responsibilities for years.

We also know that bond-rating agencies give the colleges good marks for how their debt is managed.  The absence of state facilities support adds to the tuition burden.  Accordingly, the association will recommend ways for the colleges and the state to reduce this burden through innovative private partnerships.

One issue raised in the SCI report was dealt with very recently with a stroke of the governor's pen.  A new law makes it an offense to solicit political contributions from public agencies such as our state colleges and universities; neither can they make contributions.

This year and last we worked cooperatively with the state to create a new code of ethics to guard against financial aid abuse and to provide greater financial transparency for presidents and trustees.  This work will continue.

We agree that trustee board appointments must be kept non-partisan and representative of the best interests of students, the institution and the state.  New Jersey has a good process now, but our association will suggest some specific changes regarding trustee qualifications and the appointment process.  Our recommendations will reflect these principles:

1. Non-partisan, autonomous boards of trustees are the foundation for college effectiveness, governance and public accountability.

2. The goal of autonomous governance beyond protection from political intrusion is to promote opportunity, mission, diversity, quality, service, innovation and direct citizen accountability.

3. All partners in higher education service delivery, governance and coordination must be committed to openness and public accountability for the purpose of serving the public good and building greater public trust.

We agree that the state needs a stronger vision for, and investment in, its public colleges.  The SCI's call for a task force to study and accomplish this goal is a good one.  We believe such a task force should be independently staffed to draw upon the expertise of New Jersey's best thinkers, together with national higher education experts.

Minimize Bureaucracy

While our recommendations will require action by campuses and by the state, they will not require a command-and-control bureaucracy.  They will recognize the role of existing entities such as the attorney general, state comptroller, inspector general and state audit as appropriate agencies to monitor and enforce compliance with law and regulation.

When all the institutional steps toward greater accountability are taken, there still remains a major role for the state, a role yet to be fulfilled.  State government, our major investment partner, must have a clear public agenda that includes higher education and a plan to invest in it.  Without this kind of clarity, accountability can become an empty exercise about structure, devoid of progress measurements.

Citizens deserve the hope and benefits of higher education beyond what they share in its cost.  If the state colleges and universities and state government work together, we can ensure the blessings of opportunity, prosperity and equality that education promises.