New Jersey Strengthens Fiscal Accountability in Public Higher Education Institutions

NEW JERSEY STATE – In an effort to bolster financial transparency and accountability, New Jersey Governor Phil Murphy has signed legislation that enacts significant fiscal oversight measures for public higher education institutions in the state.

The new law, referred to as S3406, mandates the Office of the Secretary of Higher Education (OSHE) to assist public institutions in maintaining their fiscal health through measures such as annual financial reporting requirements and specialized training for chief financial officers.

Governor Murphy emphasized the importance of this legislation, stating, "Promoting fiscal accountability among our public institutions of higher education will not only benefit students and employees but will also help the schools themselves avoid financial crises that could put their entire operation at risk."

By enforcing these policies, the state hopes to prevent financial instability within these institutions and assure students and their families of the financial reliability of their educational choices. Secretary of Higher Education, Dr. Brian K. Bridges, acknowledged the importance of safeguarding the significant investments made by students, their families, and the state into higher education.

Under the new law, New Jersey's public institutions are required to submit annual fiscal monitoring reports to OSHE. It also provides the Secretary of Higher Education with the authority to conduct comprehensive audits of a public institution's finance and governance operations and to appoint a State monitor under circumstances indicating financial instability.

In addition to chief financial officer training, the law stipulates that the Secretary of Higher Education will determine their duties and responsibilities and, in consultation with the State Comptroller and the Attorney General, hold them accountable for violations of fiduciary responsibilities.

Senator Vin Gopal, a sponsor of the law, noted the law's importance, stating, "New Jersey's public institutions of higher learning are among the best in the world, and among our state’s strongest assets. Requiring public colleges and universities to submit an annual fiscal monitoring report will go a long way toward ensuring transparency and efficiency.”

Assemblywoman Mila Jasey, Chair of the Assembly Higher Education Committee, echoed this sentiment, emphasizing the need for financial stability, transparency, and oversight to protect students' investments and educational needs. Other sponsors of the law, including Senator Joseph Cryan and Assembly members Linda Carter and John McKeon, affirmed the crucial role of the law in promoting financial responsibility and accountability in higher education institutions.

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