Report blasts deregulation 

A two-year investigation of public colleges and universities in New Jersey has concluded that the "entire system is vulnerable to waste, abuse and violations of the public trust." The probe by the State's Commission of Investigation (SCI), an independent arm of the Legislature, documents widespread spending irregularities, instances of political meddling in governance, and the bleak financial picture of colleges carrying some of the highest debt load in the country.

Sadly, the faculty and staff unions in the state predicted this mess when former Gov. Christie Whitman deregulated higher education in 1994, abolishing the state Department of Higher Education and, along with it, "all meaningful elements of state involvement in safeguarding the taxpayers' sizeable investment in the system," according to the SCI report. The restructuring gave power to a commission made up of all the state's college presidents and to individual boards of trustees. The result has been a lack of coordination, governance and accountability.

Beyond the fraud and patronage scandals that have come to light at the University of Medicine and Dentistry of New Jersey, the SCI report documents further improprieties at Rutgers, Rowan College, Rampo College of New Jersey and Montclair State University. In addition, the state has withdrawn its support from public higher education so precipitously that now the public colleges and universities there charge among the highest tuitions of any state.

"We hate to say it, but we told you so," says Nick Yovnello, president of the Council of New Jersey State College Locals/AFT, which, along with the Rutgers AAUP/AFT, has warned from the start of the dangerous consequences of placing unprecedented power in the hands of campus-level governing boards. "We have reiterated this position in legislative hearings, in meetings with legislators and the Commissioner of Higher Education, and in our 2006 study, ‘Flunking Out: New Jersey's Support for Higher Education Falls Short.' "

CNJSCL has endorsed SCI's recommendations, which include elevating the Commission on Higher Education to cabinet-level status, revamping institutions' governing boards, establishing a code of ethics and changing the budget process. The union also recommends giving campus unions representation on every governing board and giving the cabinet-level commission head authority to impose limits on upper-level management salaries.

"Our feeling about accountability in finances is: Fund the salaries and benefits, since there is sure to be accountability in how these funds are spent, and then deal with the operating budget," says Lisa Klein, Rutgers AAUP/AFT president.

"If the Legislature and the governor had more control over how our institutions are managed, it stands to reason that they would be more willing to increase appropriations," adds Yovnello.

To see "Vulnerable to Abuse," the SCI report, go to www.state.nj.us/sci. To see "Flunking Out," go to www.cnjscl.org/Library/Flunking Out 2006.pdf