State audits show two New Jersey colleges have been paying almost a million dollars in benefits to employees who'd quit, been suspended or never worked at all.

Auditors found Richard Stockton College has been paying health benefits for people who quit as far back as 1996. The same problem was found at Rowan University.

The findings come at a time when New Jersey colleges and universities are asking the state for more than $1.5 billion. Lawmakers were flabbergasted when informed of the waste.

"I think it's disgraceful," said Sen. Marcia Karrow, a Republican sitting on the Budget Committee. "I think they need to get their act together very, very quickly. It should never take an audit like this to reveal these things."