Minnesota State College Southeast president broke rules on gifts, workplace respect, investigators say

Minnesota State College Southeast President Marsha Danielson inappropriately used a college-owned car, accepted a hockey ticket package and treated employees in a manner that could be viewed as demeaning, humiliating or bullying, according to reports and emails released this week that show she violated system procedures.

The Minnesota State system of colleges and universities began investigations after multiple people filed complaints about Danielson in October. Chancellor Devinder Malhotra said in a statement that he is reviewing the findings and meeting with the campus community to determine if discipline is warranted.

"This is a top priority for me — I am committed to ensuring that Minnesota State College Southeast fosters an empowered and respectful workplace, and that all employees of Minnesota State adhere to the utmost in professionalism and ethical behavior," Malholtra said.

Danielson declined a request for an interview with the Star Tribune. She told her colleagues in an email last week: "I am taking a hard look at where I need to grow as a leader, and I have begun taking immediate action. Please accept my sincere apology and know I am committed to doing better."

Minnesota State College Southeast is a technical and community college with campuses in Red Wing and Winona, which are about 60 miles apart, along the Mississippi River. Danielson became the college's president in July 2021 and had spent the prior 25 years working in positions throughout the system.

The system relied on its Office of Internal Auditing to investigate allegations that Danielson "misused college resources and took advantage of her state position." It enlisted a private company — Mendota Consultants — to probe complaints that she had addressed employees in ways that were demeaning, threatening or included racist and sexist language.

The investigation found that Danielson used two college-owned cars for traveling between campuses and her home, but she did not qualify for them because her contract includes an $833 per month allowance for transportation and communication.

Investigators also found that Danielson inappropriately accepted a Minnesota Wild ticket package from Xcel Energy that included tickets, beverages, food and a bus ride to St. Paul. Danielson told investigators she does not care for hockey and that it was "definitely a work function" that would give her an opportunity to meet with community leaders in Red Wing and Winona.

The system found her actions violated a gift policy because "the event did not have any correlation to the college and would not have been free to the general public."

Danielson told colleagues last week in an email that she has stopped using a state vehicle and intends to reimburse the system for mileage and pay for her participation at the hockey game.

Doug Anderson, a spokesman for the Minnesota State system, said officials are working to determine the value of those items.

The Office of Internal Auditing also found "a repeated pattern of the president awarding contractual work to friends without consideration to competitive purchase requirements." But the office said she did not violate procedure "because Minnesota State's policies only address hiring family members."

A separate report from Mendota Consultants outlined the findings of an investigation into complaints made by four people who alleged Danielson acted in ways that were dishonest or disrespectful. At least one alleged she used profanity and racist and sexist language. The system redacted large parts of their complaints from a version of the report released Tuesday to the Star Tribune.

The report said Danielson had at times referred to a meeting as a "powwow," devaluing Native American culture. It said she referred to people as "hon" or "babe," which Danielson told investigators she didn't realize she had done until it was brought to her attention.

The report also examined allegations that she invoked stereotypes on multiple occasions: imitating another college president's foreign accent; saying Malhotra didn't immediately pick up a check for lunch and attributing it to his Indian culture; and claiming all Asian people look the same.

In each instance, Danielson denied making the remarks, but the investigator wrote that the witness statements were "found to be more credible" and consistent with other evidence.

The report also said "the majority of witnesses" heard Danielson speak negatively about employees.

Danielson told investigators she had recently begun working with a leadership coach and was participating in a review.

In emails to colleagues last week, she acknowledged she had been told her actions violated Minnesota State's procedure regarding a respectful workplace. She said she will work to eliminate profanity and gender-based references from her speech and to be "totally confidential and more sensitive," particularly when communicating performance expectations.

"I am taking this very seriously and know I need to give greater thought to how I express myself," Danielson wrote. "This experience has heightened my awareness about my approach to leadership and how I engage with others.

"I didn't realize the negative impact I was having on others, and I regret the hurt my behavior has caused."