Assembly Higher Education Committee unanimously votes A-2524 (disclosure of senior management compensation packages) out of committee
	On October 19, 2006, the Assembly Higher Education Committee unanimously voted A-2524 out of committee. This is the Council sponsored bill that would require our institutions to make annual disclosure of the compensation packages provided to senior management to the Commission on Higher Education, the Legislature and the Governor.  It also requires annual disclosure of the ratio of senior managers to students and to full time faculty. Council Legislative Representative Jon Erickson testified before the committee. There is no doubt that these disclosures would assist the Council in lobbying for higher education funding that targets instruction and student service rather than managerial perks.  It would deter the institutions from hiring an excessive number of over-paid managers and administrators.  Finally, if the boards of trustees are brazen enough to continue to expand managerial positions, even in light of the full disclosure required by this bill, we could have a firm basis for insisting on fundamental changes in the governance structure. As this bill moves through the legislature, the Council will be calling upon you to get involved by contacting your legislators either through the CAPWIZ program, by telephone or in person. PLEASE BE READY TO DO YOUR PART.           Testimony of Dr. Jon Erickson, Legislative Representative, Council of New Jersey State College Locals, AFT/AFL-CIO Before the Assembly Higher Education Committee - October 19, 2006, in Support of A-2524 To Chairman Patrick  Diegnan and honorable members of the Assembly Higher Education Committee, Assemblywoman Pamela Lampitt, Vice Chair, Assemblyman Bill Baroni, Assemblywoman Jennifer Beck, Assemblyman Thomas Giblin, Assemblyman Joseph Malone, Assemblyman Richard Merkt, Assemblywoman Sheila Oliver, Assemblyman Craig Stanley and Assemblyman Jim Whelan  Since the elimination of the Department of Higher Education over a decade ago, the state colleges and universities have had a free hand in hiring and setting compensation for senior managers and administrators.  This has led to a bloated management—in terms of both proliferation of superfluous positions and excessive salaries and perks. Although the Legislature funds our system of public higher education and students continue to pay ever-rising tuition, neither the Legislature nor the public have any idea how many senior managers and administrators there are or what they receive in the way of compensation.  Rather, individual boards of trustees make these decisions, on their own authority, for each institution.  This President makes $200,000 a year; that President makes $250,000; this institution has four vice-presidents, that one has eight.  Where is the State oversight?  Where is the public accountability?  Sadly, there is none. A-2524 bill would require each State college and university to disclose to the Commission on Higher Education, on an annual basis, the number, titles and entire compensation packages of senior managers and administrators, as well as other essential  information, such as the ratio of managers to students and to full-time faculty.  The Commission, in turn, would be required to provide this information to the Legislature and Governor.   There is no doubt that these disclosures will assist the Legislature and Governor in crafting the annual higher education budget.  It will help you to ensure that state appropriations go to instruction and student services rather than to bonuses, expense accounts and junkets.  It will shine a bright light on management abuses at the state colleges and universities and, we earnestly hope, lead to fundamental changes in the way these institutions are governed. On behalf of the Council of New Jersey State College Locals, AFT, AFL-CIO, I thank you for voting in favor of this important bill. In particular, I wish to thank the chair of this committee and the bill’s sponsor.
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