Legislation seeks to take back the CSU

Capitol bid to rein in CSU execs
Legislation would add oversight of the state university system

Jim Doyle, Chronicle Staff Writer
Thursday, March 1, 2007
State lawmakers have introduced legislation calling for more governmental oversight of the California State University system, which has come under criticism after reports that some of its top executives were receiving hundreds of thousands of dollars in extra compensation without public disclosure.

The oversight plan, which includes adding two legislators or their appointees to the CSU Board of Trustees and requires that executive contracts be approved in public session, comes in response to The Chronicle's reports on special compensation packages for current and former executives of the nation's largest university system.

"This is an effort to earn back the public's trust," said state Assemblyman Anthony Portantino, D-La Cañada Flintridge (Los Angeles County), during a news conference Wednesday at the Capitol in Sacramento. "The general public must have trust in the institutions of higher learning where we put our children."

Portantino, the bill's author, cited the newspaper's two-day series in July as the genesis of his legislation. The stories revealed that as much as $4 million in special perks and extra compensation has been paid to departing CSU officials during the past decade without public disclosure by the chancellor or Board of Trustees.

Beneficiaries included those who remain on the payroll while taking jobs elsewhere and others who receive hundreds of thousands of dollars in consulting contracts from the CSU after their retirement. For example, former executives Peter P. Smith of CSU Monterey Bay and CSU Executive Vice Chancellor David Spence took paid transitional leaves in 2005, a perk that enabled them to receive most of their six-figure salaries for a year after they left office and took six-figure jobs elsewhere.

The legislation, introduced last week as The California State University Reform, Trust and Responsibility Act, would authorize the appointment of two state legislators or their designees to the CSU Board of Trustees. The additional two members would be appointed by the state Senate and Assembly.

Clara Potes-Fellow, a CSU spokeswoman, said the university system has not yet taken a position on the bill.

Portantino, who chairs the Assembly Higher Education Committee, said the bill would restore confidence in the CSU by "giving the Legislature a voice on the Board of Trustees, open up future meetings on executive compensation and eliminate any suggestion of impropriety ..."

It would also give the governor and lieutenant governor -- who hold ex officio positions on the 25-member board -- seats on the board. Each could designate someone to attend CSU meetings on their behalf.

The bill calls for the trustees to approve all executive contracts in public session and reveal all benefits, not just salaries and housing. It also requires CSU executives who are paid for professorships to actually teach classes, and that their compensation could not exceed the amount a full-time professor in the CSU system would be paid for similar teaching duties.

"The priorities are upside down when a handful of top executives are receiving record raises at the same time that faculty are struggling to negotiate fair contracts and students are being hit with tuition increases," said Assemblywoman Julia Brownley, D-Santa Monica, a co-author of the bill. Brownley, who chairs the Assembly Budget Subcommittee on Education, served 12 years on a school board.

State Sen. Gloria Romero, D-Los Angeles, the majority leader and a CSU professor on leave, called the legislation a "very direct and clear message to the chancellor of this university ... the students, and the citizens who share their outrage. Quality education begins in the classroom, not the upper echelons of the ivory tower. The days of trustees operating in the dark of night, giving away additional perks to executives, are over. This is a sunshine bill."

Sen. Leland Yee, D-San Francisco, introduced a bill last month that also aims to compel CSU trustees to meet in public when discussing and deciding executive compensation issues.

Susan Meisenhelder, a CSU professor and statewide political action chairwoman of the California Faculty Association, said the university system's faculty union supports the bill because it will make it more difficult for CSU executives "to further pad their compensation."

She cited a provision of the bill that would require the California Post-Secondary Education Commission to track certain data and report regularly on state funds going toward instruction compared to administration in the CSU system. She said the faculty union has tracked some of these dollars and found that in recent years the percentage of state funds used to pay for CSU instruction has declined while the percentage for CSU administration has increased.

"This is a bill about good government. It's not a partisan bill," Portantino said.

E-mail Jim Doyle at jdoyle@sfchronicle.com.

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