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March 12. 2012 10:46PM
USNH trustees say bill to cut chancellor office ill-conceived
CONCORD — Leaders of the board that oversees the University System of New Hampshire say a cost-saving plan to eliminate the chancellor's office is ill-conceived and would hurt the universities' bond rating.
The trustees spoke at a House Finance Committee hearing on Monday regarding House Bill 1692, which was approved by the full House, 247-105, last month.
The committee must review the bill before it gets a final vote.
Backers of the bill, including the House leadership, have argued that many of the functions of the chancellor's office already are performed or could be taken over by the state's four public colleges and universities, and bonding could be shifted to the state Treasury.
Supporters say the bill would save the university system more than $11 million, which would be used to defray high tuition costs.
The bill also proposes reducing from 27 to 21 the number of members on the board of trustees, which would assume the decision-making authority of the chancellor. Members of the board serve voluntarily.
Speaking after the House vote last month, House Speaker William O'Brien, R-Mont Vernon, said, “We must put more money toward reducing tuition and eliminating unnecessary and inefficient administrative overhead.”
Bill Ardinger, chairman of the board's financial affairs committee, told the panel Monday that the board shared the desire to do something about the level of tuition debt carried by public university students, which has been ranked the highest in the country.
“While there is no disagreement about the need to address costs, we don't think these administrative services are the way to get at this,” he said.
Ardinger stressed that the central office handled complex financial planning and coordinating services that could not easily be farmed out to individual colleges without adding a significant number of staff.
In addition, state Treasurer Catherine Provencher testified that the department is not currently equipped to take over all of the bonding for the university system.
Ardinger said bond rating agencies would not look kindly on the changes proposed in HB 1692, based on letters submitted by Moody's, Standard and Poors and others.
A letter from Moody's states the system's A+ rating “heavily incorporates our assessment of USNH's governance and management ability.”
Ardinger also noted that the bill's fiscal note estimates that the bill would lead to more than $12 million in costs in its first three years, cancelling out any savings.
In submitted testimony, bill sponsor Rep. Robbie Parsons, R-Milton, called the fiscal note “very self serving,” based as it was on information provided by the university system. He said the main concern of the Moody's rating agency was the preservation of a diverse board, which he said would be maintained under the bill.
The committee is expected to vote on the bill next week.
The trustees spoke at a House Finance Committee hearing on Monday regarding House Bill 1692, which was approved by the full House, 247-105, last month.
The committee must review the bill before it gets a final vote.
Backers of the bill, including the House leadership, have argued that many of the functions of the chancellor's office already are performed or could be taken over by the state's four public colleges and universities, and bonding could be shifted to the state Treasury.
Supporters say the bill would save the university system more than $11 million, which would be used to defray high tuition costs.
The bill also proposes reducing from 27 to 21 the number of members on the board of trustees, which would assume the decision-making authority of the chancellor. Members of the board serve voluntarily.
Speaking after the House vote last month, House Speaker William O'Brien, R-Mont Vernon, said, “We must put more money toward reducing tuition and eliminating unnecessary and inefficient administrative overhead.”
Bill Ardinger, chairman of the board's financial affairs committee, told the panel Monday that the board shared the desire to do something about the level of tuition debt carried by public university students, which has been ranked the highest in the country.
“While there is no disagreement about the need to address costs, we don't think these administrative services are the way to get at this,” he said.
Ardinger stressed that the central office handled complex financial planning and coordinating services that could not easily be farmed out to individual colleges without adding a significant number of staff.
In addition, state Treasurer Catherine Provencher testified that the department is not currently equipped to take over all of the bonding for the university system.
Ardinger said bond rating agencies would not look kindly on the changes proposed in HB 1692, based on letters submitted by Moody's, Standard and Poors and others.
A letter from Moody's states the system's A+ rating “heavily incorporates our assessment of USNH's governance and management ability.”
Ardinger also noted that the bill's fiscal note estimates that the bill would lead to more than $12 million in costs in its first three years, cancelling out any savings.
In submitted testimony, bill sponsor Rep. Robbie Parsons, R-Milton, called the fiscal note “very self serving,” based as it was on information provided by the university system. He said the main concern of the Moody's rating agency was the preservation of a diverse board, which he said would be maintained under the bill.
The committee is expected to vote on the bill next week.