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'I've got concerns,' Bush says of FAMU

He applauded the interim president for quickly naming someone to temporarily replace the law school dean who was placed on leave.

TALLAHASSEE - Gov. Jeb Bush said Wednesday that the latest financial problem at Florida A&M University resulted from an arrangement that "stinks" and that he's worried about the implications such decisions by administrators have on students.

The dean of FAMU's new law school in Orlando was placed on paid leave this week by interim FAMU president Castell Bryant after a payroll audit revealed an apparently nonworking law school employee being paid $100,000 a year by the school.

"I've got concerns," Bush said. "This arrangement stinks. The guy who gave the million bucks and got a hundred thousand a year for not showing up."

Percy Luney Jr. was suspended after an audit uncovered information showing that Shirley Cunningham Jr., an attorney in Lexington, Ky., was getting a check every two weeks but was rarely seen on campus. Cunningham had given the school $1-million for an endowed chair, which he was supposed to fill.

James M. Douglas, former president of Texas Southern University, was named to temporarily replace Luney.

"I like, frankly, the fact the interim president is taking action," Bush said. "I think she needs to consult with the board, but I'd rather have her take action than not take action."

Bryant's decision to remove Luney came after the state agency that investigates misuse of taxpayers' dollars said it was investigating FAMU's Institute on Urban Policy and Commerce at the main Tallahassee campus. Bryant suspended work at the institute in April and fired the staff in May.

Asked about the latest incident, Bush said Wednesday he worried about the students.

"These things done by administrators do a disservice to the university and hurts the students," he said.

In March, the school responded to reports on its finances by imposing a moratorium on spending, recalling cell phones and cutting off travel.

In April, the National Science Foundation threatened to terminate its federal grants to the school if it didn't solve its financial problems within two months.

A separate audit earlier in the year revealed that the university spent at least $51.1-million more than was budgeted. It paid staff $19.5-million less in salaries than state records said it should. The auditing firm, KPMG, could not explain the discrepancy.

KPMG's report says the school didn't balance its books and often couldn't track how it spent money.

The U.S. Department of Education also reported that FAMU was not complying with regulations for federal aid.

[Last modified June 9, 2005, 01:16:07]