The top official at N.C. State University said that the school doesn't have the money to pay a settlement to former first lady Mary Easley, who is appealing her contract termination.
Interim Chancellor Jim Woodward also said that Mary Easley certainly knew that her husband, former Gov. Mike Easley, pushed N.C. State officials to hire her, the Raleigh News & Observer reported yesterday.
Mary Easley had gotten a five-year contract worth $850,000 to run a speaker series and create a public-safety leadership center.
Recently, the previous N.C. State's former Chancellor James Oblinger and former Provost Larry Nielsen resigned amid disclosures about their role in helping her get the job.
Mary Easley indicated that she will appeal her termination.
Her attorney declined to comment.
"I think she was well aware of the efforts made on her behalf to get her a new job and a new contract," Woodward said in an interview with the newspaper.
"And those efforts were highly inappropriate."
Woodward said he won't be involved in the appeal process because he publicly supported her firing.
An appeal first will be heard by a faculty committee and reviewed by a committee of new members of the school's board of trustees.
Woodward said he supports allowing Oblinger and Nielsen to retain their faculty posts because they have tenure, which should be very hard to break.
Woodward also said he has seen no evidence that the university received anything concrete in return for Mary Easley's position.
"What could the governor do that could bring some short-term benefit to N.C. State? I can't identify anything," he said.
Woodward added that he wants to restore the morale of N.C. State's community.
"They're terribly embarrassed; they're mad at those they feel are responsible," he said. "One of my goals has been to help them refocus on the work that they do."
He said that the saga may help the university in the long run "because it has forced a review of a lot of things."
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