New Jersey Statutes

N.J. Stat. § 18A:65-25 (2026)

Authority and responsibility of board of governors

✓ current as of May 2026
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18A:65-25. The board of governors shall have general supervision over and be vested with the conduct of the university. It shall have the authority and responsibility to:

a. Determine policies for the organization, administration and development of the university;

b. Study the educational and financial needs of the university, annually acquaint the Governor and Legislature with the condition of the university, and prepare and present the annual budget to the Governor, the Division of Budget and Accounting in the Department of the Treasury and the Legislature, in accordance with law;

c. Disburse all moneys appropriated to the university by the Legislature, moneys received from tuition, fees, auxiliary services and other sources, and from or by direction of the board of trustees;

d. Direct and control expenditure and transfer of funds appropriated to the corporation and the university by the State in accordance with the provisions of the State budget and appropriation acts of the Legislature; and, as to funds received from the trustees and other sources, direct and control expenditures and transfers in accordance with the terms of any applicable trusts, gifts, bequests, or other special provisions, reporting changes and additions thereto and transfers thereof to the Director of the Division of Budget and Accounting in the State Department of the Treasury. All accounts of the university shall be subject to audit by the State at any time;

e. Borrow money for the needs of the corporation and the university, as deemed requisite by the board, in such amounts and for such time and upon such terms as may be determined by the board, with the consent and advice of the board of trustees; provided, that no such borrowing shall be deemed or construed to create or constitute a debt, liability, or a loan or pledge of the credit, or be payable out of property or funds (other than moneys appropriated for that purpose) of the State;

f. 1. Purchase all lands, buildings, equipment, materials and supplies; and

2. Employ architects to plan buildings; secure bids for the construction of buildings and for the equipment thereof; make contracts for the construction of buildings and for equipment; and supervise the construction of buildings;

g. Manage and maintain, and provide for the payment of all charges on and expenses in respect of, all properties utilized by the university;

h. In accordance with the provisions of the budget, have the sole power (subject to the provisions of section 18A:65-31) to elect, appoint, remove, promote or transfer all corporate, official, educational and civil administrative personnel, and fix and determine their salaries in accordance with salary schedules adopted by the board of governors. Such salary schedules shall prescribe qualifications for the various classifications and shall limit the percentage of the educational staff that may be appointed or promoted to any given classification;

i. In accordance with the provisions of the budget, appoint, remove, promote and transfer all other officers, agents, or employees, assign their duties, determine their salaries, and prescribe qualifications for all positions, and in accordance with the salary schedules of the State Civil Service Commission wherever possible; and

j. Authorize any new educational department or school consistent with the institution's programmatic mission or approved by the Commission on Higher Education.

Notes of Decisions
Cited in 10 cases (2 in the last 5 years), 1973–2025 · leading case: Krebs v. Rutgers, 797 F. Supp. 1246 (D.N.J. 1992).
Krebs v. Rutgers, 797 F. Supp. 1246 (D.N.J. 1992). · cites it 2× “In addition, Rutgers is not required to manage its funds as public monies, N.J.S.A. 18A:65-25(c), (d), (g), nor is it required to comply with state civil service, competitive bidding, and administrative procedure requirements.”
Ciba-Geigy Corp. v. Alza Corp., 804 F. Supp. 614 (D.N.J. 1992). · cites it 2× “N.J.S.A. 18A:65-25(c). Finally, the court explained that unlike most agencies, Rutgers does not have to abide by civil service, competitive bidding or administrative procedure mandates.”
Kovats v. Rutgers, 633 F. Supp. 1469 (D.N.J. 1986). “N.J.S.A. 18A:65-25(h). Defendants’ motion is therefore granted.”
Miller v. Rutgers, 619 F. Supp. 1386 (D.N.J. 1985). “N.J.S.A. 18A:65-25 and 26. The composition of the Board of Governors is comprised of two ex officio members without voting privileges, and eleven voting members.”
Stewart v. Rutgers, 930 F. Supp. 1034 (D.N.J. 1996). · cites it 2× “(citing N.J.S.A. § 18A:65-25). Jean L. Ambrose has been assistant vice-president for faculty affairs at Rutgers since November 1986.”
Rehberg v. Glassboro State Coll., 745 F. Supp. 1113 (E.D. Pa. 1990). “Moreover, unlike Rutgers, Glassboro is bound by the Administrative Procedure Act, Civil Service Rules and Regulations, and competitive bidding statutes.”
Lawrence Rothblum v. Bd. of Trs. of the Coll. of Med. & Dentistry of New Jersey Appeal of Lawrence Rothblum, 474 F.2d 891 (3rd Cir. 1973). “N.J.S.A. 18A:65-25. See also, N.J.S.A. 18A:65-26.”
Galda v. Bloustein, 86 F.R.D. 561 (D.N.J. 1980). “3, the court must conclude that the plaintiffs’ apprehensions are unfounded, since the members of the Board of Governors of Rutgers remain as defendants in this case and, pursuant to N.J.S.A. 18A:65-25, the Board of Governors is vested with general supervision and control of the…”
Rowan Univ. v. Factory Mut. Ins. Co. (D.N.J. 2021). · cites it 2× “2d at 1311–12 (emphasizing that Rutgers’ “boards are not subject to the operational 12 Defendant urges the Court to discount these considerations because Rutgers is subject to the same state oversight and statutory requirements per N.J.S.A. §§ 18A:65-25(b), -34 and was…”
Erin Kelly v. William M. Tambussi (N.J. Super. Ct. App. Div. 2025). “with the conduct of the university," N.J.S.A. 18A:65-25. The responsibilities of the BOG include determining the "organization, administration and development of the [U]niversity," and overseeing the University's properties and assets, including the spending of monies directed…”
— N.J. Stat. § 18A:65-25(b) — 1 case
Rowan Univ. v. Factory Mut. Ins. Co. (D.N.J. 2021). “2d at 1311–12 (emphasizing that Rutgers’ “boards are not subject to the operational 12 Defendant urges the Court to discount these considerations because Rutgers is subject to the same state oversight and statutory requirements per N.J.S.A. §§ 18A:65-25(b), -34 and was…”
— N.J. Stat. § 18A:65-25(c) — 2 cases
Krebs v. Rutgers, 797 F. Supp. 1246 (D.N.J. 1992). “In addition, Rutgers is not required to manage its funds as public monies, N.J.S.A. 18A:65-25(c), (d), (g), nor is it required to comply with state civil service, competitive bidding, and administrative procedure requirements.”
Ciba-Geigy Corp. v. Alza Corp., 804 F. Supp. 614 (D.N.J. 1992). “N.J.S.A. 18A:65-25(c). Finally, the court explained that unlike most agencies, Rutgers does not have to abide by civil service, competitive bidding or administrative procedure mandates.”
— N.J. Stat. § 18A:65-25(d) — 2 cases
Krebs v. Rutgers, 797 F. Supp. 1246 (D.N.J. 1992). “In addition, Rutgers is not required to manage its funds as public monies, N.J.S.A. 18A:65-25(c), (d), (g), nor is it required to comply with state civil service, competitive bidding, and administrative procedure requirements.”
Ciba-Geigy Corp. v. Alza Corp., 804 F. Supp. 614 (D.N.J. 1992). “N.J.S.A. 18A:65-25(c). Finally, the court explained that unlike most agencies, Rutgers does not have to abide by civil service, competitive bidding or administrative procedure mandates.”
— N.J. Stat. § 18A:65-25(h) — 1 case
Kovats v. Rutgers, 633 F. Supp. 1469 (D.N.J. 1986). “N.J.S.A. 18A:65-25(h). Defendants’ motion is therefore granted.”
— N.J. Stat. § 18A:65-25(i) — 1 case
Rehberg v. Glassboro State Coll., 745 F. Supp. 1113 (E.D. Pa. 1990). “Moreover, unlike Rutgers, Glassboro is bound by the Administrative Procedure Act, Civil Service Rules and Regulations, and competitive bidding statutes.”
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