K. Pettit (a former MSU professor of political science) launched an investigation of several Montana colleges and universities. He was particularly interested in MSU, where McIntosh's laid-back governance style was widely considered to have hurt the university. In March 1976, Pettit announced he was confiscating $1 million in surplus student fees from MSU — money he argued the university was trying to hide from state auditors and the legislature. The monies were the result of excessively high enrollment in the 1974–1975 school year and were intended to help see the university through the 1975–1976 school year (when the legislature would not meet, and thus could not provide the needed budgetary boost to handle the over-enrollment). Pettit all but accused MSU and McIntosh of fraud, and McIntosh refused to attack Pettit's statements as mischaracterizations and slander. The public outcry about the "hidden million" led the board of regents to request McIntosh's resignation on 30 June 1977, which he tendered. (Pettit …
Montana State University
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