CSCU Chancellor Faces Intense Scrutiny Over Financial, Transparency Failures

by Karla Ciaglo CTNewsJunkie

HARTFORD, CT – During a tense hearing Tuesday the chancellor of the Connecticut State Colleges and Universities system, Terrence Cheng, faced intense scrutiny from lawmakers over his financial oversight, spending practices, and the broader institutional culture within the CSCU system.

Acknowledging past financial missteps before the Higher Education and Employment Advancement Committee, Cheng took personal responsibility and pledged reforms to restore transparency and accountability. However, legislators expressed deep frustration with his management of CSCU’s finances, emphasizing an urgent need for cultural and structural changes to rebuild public trust.

In his opening remarks, Cheng expressed deep regret.

“The concern and the challenge and the problem are here now, and it is our responsibility – my responsibility – to ensure that we are doing something about it,” he said, acknowledging the need to restore trust by implementing stronger oversight mechanisms, reinforcing policies, and enhancing compliance training.

Cheng also credited Comptroller Sean Scanlon and the state Auditors of Public Accounts for their recommendations, which have been instrumental in shaping new financial guidelines for the system that oversees 85,000 students at CT State Community College, the four state universities, and Charter Oak State College. 

Among the proposed reforms is House Bill 6887, which includes a new centralized purchasing-card policy slated for Board of Regents approval, with an anticipated effective date of April 1, 2025.

Lawmakers did not hold back in their critique of CSCU’s financial practices. A key concern raised was the systemic culture that allowed financial mismanagement to persist. One committee member pointed to past scandals, including unauthorized pay raises and costly abandoned projects, questioning whether CSCU had ever fostered genuine accountability.

Sen. Derek Slap, D-West Hartford, one of the committee’s co-chairs, challenged the chancellor directly.

“So is there a cultural problem? And if so, what can you do as a leader to change it? Because that is harder than changing policies,” Slap asked.

Cheng acknowledged that some offices within CSCU – which comprises had historically lacked diligence in financial oversight.

“To your point about culture, senator, I would be lying if I did not say that there is an endemic quality to how we have potentially done business in certain offices for quite some time,” Cheng said. “We were not as fastidious, we were not as detail-oriented, we just didn’t take certain protocols seriously enough.” He further stressed that while those issues predate his tenure, it remains his duty to correct them.

Committee members emphasized that the state constitution mandates an “excellent” public higher education system – not one that merely functions adequately. Legislators urged the Cheng to align CSCU’s actions with this standard, cautioning that without significant improvement, public trust in the system would continue to erode.

Another major point of contention was the lack of transparency in CSCU’s financial reporting, particularly its integration with the state’s transparency portal. Lawmakers expressed concern that without clear and accessible financial data, accountability would remain elusive.

Cheng, joined by CSCU General Counsel Karen Buffkin, Chief Compliance Officer Cameron Liston, and Vice President of Finance and Administration Lloyd Blanchard, explained that technical challenges stem from differences between CSCU’s financial and student record systems and the state’s Core-CT enterprise system. However, they assured legislators that CSCU is working to bridge these gaps through new accountability reports that provide more frequent financial updates.

Rep. Lucy Dayton, D-Norwalk, expressed frustration over what she viewed as repeated excuses.

“We have heard this before – what’s different this time?” she said. “We need concrete action, not just words.”

Additionally, concerns were raised about how CSCU’s spending is perceived by the public.

Lawmakers noted that financial summaries could be misleading, making it seem as though large sums were being spent extravagantly. They urged Cheng to provide clearer breakdowns of expenses to dispel misconceptions and highlight the necessity of certain expenditures, such as lobbying efforts and participation in educational conferences.

“I have to recognize when I haven’t met that bar of excellence, as you pointed out,” Cheng said. “And I certainly do that. I do that in private, I do that in public. And it’s something I certainly will be held accountable for. And I will continue to stand up and be accountable for that.”

The hearing concluded with discussions on upcoming legislation aimed at strengthening financial oversight and transparency within CSCU. House Bill 5497, which was introduced by House Republicans in January, is a bill that will require the Board of Regents for Higher Education to submit an annual independent financial audit and a detailed budget report to relevant legislative committees to receive state block grant funds.

Lawmakers made it clear that scrutiny of the system would not relent until measurable improvements were evident.

“You have to address the culture head-on and ruthlessly,” said Rep. Greg Haddad, D-Mansfield, the committee’s other co-chair. “If we don’t do that, we will never earn back the trust of students, faculty, and taxpayers.”

In response, Cheng reaffirmed his commitment to meaningful change, pledging to work closely with state officials and the Board of Regents to enforce stricter financial controls. However, lawmakers remained skeptical, emphasizing that they would continue to monitor CSCU’s financial stewardship closely.

Rep. Steve Weir, R-Hebron, said the committee has to consider Cheng’s role going forward.

“I appreciate your recognition of kind of where we are and maybe a little bit of how we got here,” “You are the CEO of a incredibly large organization,” Weir told Cheng. “Your budget is measured in hundreds of millions of dollars.”

Weir said the chief executive officer is the person who drives the culture of an organization.

“We’ve got a lack of accountability that has been pervasive – that’s how we got here,” Weir said. “. “My observation – I’m not trying to put words in your mouth – but a lack of awareness on your part, of perception – the optics are terrible – I think the public trust has been broken.”

Weir highlighted a recent vote of no confidence from the CSCU faculty and staff.

“So I look at the system as broken and you’re leading that,” Weir said. “You’re supposed to be leading that and you know these aren’t little infractions, but these are cracks in a foundation of a culture that you’re supposed to be setting, so again I don’t have the authority to decide what happens going forward but I think you know we have to consider what your role is going forward.”

Cheng acknowledged Weir’s comments.

“I completely agree with you that we have a great deal of work that we need to do. And again, that does start with me. I understand your disappointment. It is warranted. There’s no two ways about it. It is warranted. And to me, this is just yet another example of where we need to rise to that occasion,” Cheng said.

He pointed out the vote of no confidence is also in part based on the merger of the community colleges and the four Connecticut state universities, for which he said the staff still feels pain.

“That is a legacy and a burden that we carry, but that’s okay because we’re in the seats now and our job is to try to make things better,” Cheng said.