Arkansas Headlines
(2008-07-16)
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University of Central Arkansas President Lu Hardin said Wednesday he'll reimburse the school for a $300,000 bonus he received after questions were raised about its legality.
"I already have acknowledged that this matter was not handled well, and I deeply regret the mistakes we made," Hardin said Wednesday. "The UCA Board of Trustees and I are taking corrective measures to ensure this error never happens again."
Trustees approved a bonus package two months ago, giving Hardin an additional $60,000 a year for five years on top of his $253,000 annual salary. However, meeting minutes and notes did not reflect the package, only that the board voted on a series of personnel decisions in a single block.
The university said in a news release that Hardin will receive his deferred compensation only if private funds are used to cover the full amount and if the UCA faculty receives salary increases.
"These two contingencies are critical to good faith in this matter," Hardin said.
The school's board of trustees chairman last week asked the attorney general's office for a legal opinion on whether the use of public money for the bonus violated a salary cap established by state legislators. The money for the bonus came from excess university revenue from student housing fees and food and book sales.
State law says that state-supported colleges and universities can exceed maximum salary levels by no more than 25 percent for no more than 10 percent of its positions. Hardin receives the maximum salary authorized by the Legislature plus 25 percent. He also receives an additional $51,614 from private funds.
The school asked for clarification on whether "cash funds" paid to the university by private companies operating the school's food services and bookstores are considered public or private funds.
Hardin said he chose to return the money after meet with representatives of the faculty, including Faculty Senate President Kurt Boneicki.
Copyright 2008 The Associated Press. All rights reserved. © Copyright 2009, UALR Public Radio
