When the longtime director of the state's $2 billion college savings program retired last year, the list of potential replacements included an asset manager, a tax lawyer and an estate planner — even the program's veteran deputy director.
Instead, the job went to Megan Perkins, 32, a key political aide to Treasurer Dawn Marie Sass, a Democrat.
Perkins had previously served as projects coordinator for First Lady Jessica Doyle and as a Wisconsin field organizer for John Kerry's presidential campaign in 2004.
Experts in state-sponsored college investment programs, known as 529s after the portion of the Internal Revenue Service code governing them, say it's not necessary to have experience with such a program before running one.
And members of the state College Savings Program Board, which sets policy for the Wisconsin program, and a state investment consultant praised Perkins' performance in her four months on the job.
But the hire has raised questions among some familiar with the program about whether political considerations played a role in Perkins getting the civil-service job.
"Overseeing the college investments program is a non-partisan issue," said Rob Kreibich, a former Republican lawmaker who wrote legislation creating the programs. "I don't think you need a political background but you certainly need knowledge of 529s."
Sass defended the move, saying Perkins' political background played no role in her hiring. And she said Perkins has brought new ideas to the job, including promoting the program through television and radio ads and a public education campaign, which will be rolled out this month.
Deputy Treasurer John Lease said Perkins was unanimously recommended by a three-person interview panel that included Lease, a political aide in the Department of Regulation and Licensing and Gov. Jim Doyle's liasion to the Department of Transportation.
He acknowledged that after the former director announced his retirement last year, Lease rewrote the job description to emphasize management and marketing over expertise in college savings programs.
Richard Janosik, who has served as deputy director of the program since 1997 and who has a master's degree in business administration, is the program's financial expert and remains on the job, Lease said.
Janosik, who was hired by former GOP treasurer Jack Voight and who applied for the director's job, declined to comment.
Lease said Perkins was not available for comment, and she did not return a telephone message Friday.
More than $2 billion in assets
Under the program, known as EdVest and Tomorrow's Scholar, anyone can open an investment account, the earnings of which must be used for higher education expenses. Wisconsin residents can deduct up to $3,000 annually per dependent or other minor relative for contributions made to an account.
The program manages more than 225,000 accounts with more than $2 billion in assets, according to Sass's office.
An 11-member board, which includes six gubernatorial appointments along with Sass, the chairman of the State Investment Board, and higher education experts, sets policy for the program. An outside adviser monitors investment performance.
Perkins' job is to carry out policy set by the board and serve as a liaison between the Treasurer's office, the board, fund manager Wells Fargo, and the program's investment advisers.
Kreibich, former chairman of the Assembly higher education committee, said that in general the top staff person needs to be familiar with changing federal laws governing state-sponsored college savings programs and with programs in other states that are competing for the dollars of Wisconsin residents.
"Federal law is constantly evolving and changing," Kreibich said. "It can get very complicated."
Sen. Alberta Darling, R-River Hills, who chairs the savings program board, said the board didn't play a role in hiring Perkins, and she wouldn't comment on it. But she said there's no indication Perkins "has not kept up with our expectations."
She added that Perkins doesn't make investment decisions and that the program has "lots of checks and balances so it doesn't rise and fall on one person."
Other moves controversial
Other personnel moves by Sass have caused controversy.
In March 2007, two part-time employees in the unclaimed property division lost their jobs after Sass created a full-time job to help her in building the profile of that division.
One, Rick Berg said in an interview he lost his part-time job and wasn't hired for the new full-time job, for which he was interviewed, because he holds conservative political views and has worked several jobs under Republican governors.
"It was clear the decision had nothing to do with performance and everything to do with politics," Berg said.
Lease said the job needed a person who could update the unclaimed property program and raise its profile among the public.
The woman who was named to the full-time job, Stephanie Wilson, 23, had previously worked for Doyle's constituent services arm. Wilson has since replaced Perkins as Sass's political aide.