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AG: University president's bonus likely violated state law Wednesday, Jul 23, 2008 By John Lyon Arkansas News Bureau LITTLE ROCK - The University of Central Arkansas Board of Trustees' decision to use an endowment fund to give UCA President Lu Hardin a $300,000 bonus likely violated state law, Attorney General Dustin McDaniel said Tuesday. In an opinion requested by UCA board chairman Randy Sims, McDaniel said cash funds of a university are public funds and cannot legally be used to increase a university employee's pay in excess of state-mandated salary caps. Neither the board nor Hardin publicly disclosed the bonus he received in May. After the bonus became public, Hardin said the money came from private donations, then later acknowledged it came from money the university received from food vendors and the campus bookstore. Hardin returned the bonus to the university last week. UCA spokesman Warwick Sabin said Hardin was not available for comment Tuesday afternoon. Sims did not immediately return a phone message left at his office seeking comment. In a letter to McDaniel, Sims asked whether money paid to the university by private companies selling food and books to students is public or private money. "In my opinion it is beyond dispute that 'cash funds' held by a public university are public funds," McDaniel said in Tuesday's opinion. Arkansas law defines cash funds as "all monies, negotiable instruments, certificates of indebtedness, stocks and bonds held by or owned by any state agency which are not on deposit with or in the trust of the treasurer of state," McDaniel noted. State law also prohibits an institution of higher education from paying an employee more than the salary level set by the state Legislature, plus 25 percent. Hardin's salary is set by the Legislature at $161,728. He receives the allowed 125 percent of that amount, or $202,160, plus $51,614 in private funds for a total of $253,744. Sims asked McDaniel whether collections from students' food and book purchases could fund a bonus for a university employee in excess of the employee's salary cap. "In my opinion, cash funds of an agency or institution may not be used to provide a 'bonus' to a state employee where the payment exceeds the maximum limits authorized by law, and where the payment is not authorized by any other statute," McDaniel said in the opinion. The UCA board made no mention of Hardin's bonus when it voted on unspecified personnel matters at its May 2 meeting, nor did it note the bonus in the meeting's minutes. After the meeting, Hardin told reporters he did not receive a raise but made no mention of the bonus. Explaining his decision last week to return the bonus, Hardin said he was "simply wrong" in not disclosing it earlier. |
