Spending Scandal Endangers Support for Huge Bond Proposal in N.C.

A scandal involving the misuse of funds at North Carolina State University has prompted greater scrutiny of the state-university system's pioneering efforts to give its campuses budgetary flexibility. The fallout could jeopardize a $3.1-billion bond referendum for campus construction.

Some state legislators say reports of extravagant spending by North Carolina State's top campus-security official are giving them second thoughts about a 1991 law that provided