Voters would get to decide whether the University of Hawaii should keep its current level of autonomy under a proposed constitutional amendment moving through the state Legislature.
The measure was prompted by concerns from lawmakers and the public over the university’s spending decisions and priorities, according to state Sen. Brian Taniguchi, chairman of the Senate Higher Education Committee, who sponsored the legislation.
"In the last two years or so, the public and the Legislature have been concerned about the university’s use of money, payment of high salaries and buyouts, especially in the climate of dwindling public funding," Taniguchi (D, Makiki-Tantalus-Manoa) said in an interview. "I think that’s what has kept this bill alive."
He cited as examples the so-called Wonder Blunder, a botched Stevie Wonder concert in 2012 that tarnished public confidence in the university; a lack of transparency over terminated administrators — including UH-Manoa Chancellor Tom Apple — and hefty settlements being paid out; and the financially struggling athletics department.
Senate Bill 637 proposes amending the state Constitution to remove the exclusive jurisdiction the Board of Regents has over the internal structure, management and operations of UH.
The move would essentially reverse a constitutional amendment voters approved in 2000 that gave the regents the power of self-governance.
That amendment has allowed the regents over the last 15 years to set policy freely and flexibly as the need arises, rather than having to wait for the Legislature to be in session and give permission. But at the same time, the Legislature has "exclusive jurisdiction" to decide when a university issue is of such statewide concern that it can override the board.
"Everyone’s concerned. The general feeling is that there needs to be more budget discipline and accountability," Taniguchi said, noting that the bill was introduced with the backing of the Senate majority caucus. "We’re not making a law. It would be on the ballot and put to the voters."
In a joint committee report advancing the bill to the Ways and Means Committee, Taniguchi and Senate Judiciary Chairman Gil Keith-Agaran wrote that "as the only public institution of higher learning in the state, it is important to ensure proper oversight and transparency of the university’s fiscal and operational administration. This measure opens the conversation on whether the University of Hawaii system should maintain its autonomy."
The university testified in strong opposition to the measure.
UH President David Lassner and regents Chairman Randy Moore said in written testimony that the fiscal autonomy granted by the 2000 constitutional amendment has been critical in UH’s efforts to support the economy.
"We believe this widely accepted advance in public policy has been a huge success for Hawaii," they wrote.
For example, the testimony said, since 2000 UH has undertaken more than $1 billion in major construction projects that has stimulated economic activity across the state.
During that time frame, UH said, its total expenditures have grown from $730 million in 1999 — with 52 percent of that from state general funds — to $1.5 billion last fiscal year, with state funding now contributing less than 30 percent.
Still, UH says it has been enrolling more students and awarding more degrees as well as attracting more research grants.
David Hafner, a former executive at UH-Manoa, says the proposed amendment is sorely needed "to break the cycle of lack of accountability" at UH.
Hafner, who previously worked as assistant vice chancellor for facilities and grounds and as director of administrative services for the Institute for Astronomy, said UH’s "dysfunctional" governance system requires more legislative oversight.
"There will be many who will argue that for reasons of ‘academic integrity’ and for reasons of accreditation that this amendment is counter-productive," he said in written testimony. "Let me respond by saying that the experiment in university autonomy has demonstrably failed and now is the appropriate time to re-establish public supervision."
