The NH Community Technical College System has been paying consultants hundreds of thousands of dollars to fix its ailing financial aid system. Whether the investment has paid off remains an open question. What is certain, however, is that neither the Executive Council nor the Legislature was aware the system was spending so much money to deal with its problems.
Since last September, the community technical college system has paid more than 300,000 dollars to Massachusetts lawyer Milton Kerstein……In the coming months, that outlay could easily double……The man at the head of the technical college system, Bill Simonton, says Kerstein was brought in to deal with a financial aid system in crisis. In 2005, 2 of the 7 of colleges had no financial aid directors at all. Filling the empty slots was made more difficult by hiring freezes and salary caps. Meanwhile, money was going to people who didn't deserve it, and key protections were not in place……The college system relies on more than 20 million dollars in federal aid, and Simonton says Washington was not pleased.
"The federal government can take action up to fines or even cutting colleges off from being part of the federal financial aid programs, which would obviously be a disaster."
The state hired Milton Kerstein and his firm to find out how bad the problem was…….But they ended up running the financial aid systems is Manchester and Stratham….The firm also provided four people to review operations at other campuses……The problems they confronted were not new. They have plagued the technical colleges for many years. Simonton says elected officials who ought to know have known about the situation.
"We've talked about financial aid a number of times. The fiscal committee has gotten reports for ten years that point to problems with financial aid with the community technical college system. You know, I have not run through the halls with a banner, but we have made it clear. We briefed the Governor."
'On the fact that the state's spending this much money on Attorney Kerstein? The Legislature and the Governor are aware of that?'
"No. Probably, no. I mean there's no attempt to hide it from them."
But if a $300,000 plus price tag is any measure of the extent of the system's problems, key lawmakers were not as aware as Simonton thought…..Deputy House Speaker Ken Weyler sits on the joint Fiscal Committee and chairs the Legislature's Audit Committee…..When told of the payments to Kerstein, he was surprised.
"I had some inkling that there were problems with the scholarship fund and it's worrisome to me that I don't know more details at this point."
Others on fiscal committee agree that somebody --either Simonton or the technical systems board of trustees -- should have been more forthcoming……Democratic State Senator Lou D'Allesandro.
"Well, I think you have to do what you need to correct a problem. And keeping people informed is really the key issue and I think we'll have that from this point on."
Typically any contract over 5,000 dollars needs to be sent to the executive council for approval…..The college system is exempt from that in the event of the emergency……Attorney general Kelly Ayotte says there was no problem with the Kerstein's original contract……But in her opinion justifying it's emergency status was no longer possible.
"In particular the changes that had occurred with the contract and the length that was unanticipated it was our recommendation that they bring it forward to the Executive Council."
As of yesterday, officials were scrambling to put all matters involving Kerstein to an executive council vote……That could happen as soon as next week. In the meantime, the state's independent auditors -- KPMG-- have discussed their preliminary findings regarding the technical college system's financial aid program…….with top system officials…..Those findings aren't slated to become public for another month. Commissioner Simonton says he hopes that report will show that for all the time and money spent the situation has improved, but he adds he won't know until sees the numbers.
