The Gremlins of Governance, July/August 2009

This issue of Trusteeship provides a picture of the current environment for campus governance, as well as some guidance. William Freund, chief economist emeritus of the New York Stock Exchange, offers his reflections on the economy and the "slow, gradual, and tedious" recovery before us. State legislators Geanie Morrison and Denise Merrill suggest that now is the time for state legislatures to engage more directly with higher education to accomplish state goals. The challenge, they argue, is finding new ways to address the educational needs of states and citizens, even in this new turbulent economy.

Tom Hyatt offers guidance on the new IRS Form 990, the implementation of which is affecting boards of all independent institutions, as well as the foundations of public colleges and universities. Part of the new focus on board and institutional accountability, this "new report card" is sure to have more public audiences than the previous form, but it also offers a way to verify "use of best practices in governing policies and procedures."

Governance guru Dick Chait does what he does best--he questions "common knowledge" about governance. Instead of focusing so much on policies and procedures, he would have boards pay attention to their culture to avoid being "lawfully mediocre."