State-related schools issue snags budget process

Institutions are exempt from parts of Pa.’s Right-to-Know Law

Debates about funding for Pennsylvania’s state-related universities have sparked renewed questions over accountability and transparency at these schools.

Though universities like the University of Pittsburgh and Penn State are educational behemoths that receive millions of dollars in government funds, they are only required to report minimal information about their finances every year.

In July, a majority of House Republicans voted down the state-related universities’ 202324 appropriations, citing minimal transparency as one of the reasons they were wary to provide these universities with their state funding. The state-related universities — including Pitt, Penn State, Temple University and Lincoln University — are exempt from large portions of Pennsylvania’s Right-to-Know Law.

Despite voting in favor of the universities’ funding, some Democrats have also signaled willingness to reexamine these universities’ public records requirements. Citizens and journalists have also pushed for more openness.

Melissa Melewsky, media law counsel for the Pennsylvania NewsMedia Association, said increased transparency at these schools would benefit Pennsylvania’s citizens.

“Access enables accountability,” Melewsky said. “Without access, there is no accountability.”

As university transparency is spotlighted, here’s what to know about the current Right-to-Know Law and why some are pushing for change.

What is the Right-to-Know Law?:

Pennsylvania’s Right-to-Know Law is a public records law that allows citizens, journalists and public officials to request information from state and local government bodies, such as elected officials and public school districts.

Unless the information is covered by a lengthy list of exceptions, the government body must provide the requested information within five to 35 business days.

Citizens can request information by sending a request form to the relevant state agency. Filing a request is free, but the requester may have to pay fees related to physical production of the records.

What are the state-related schools required to report?

The state-related universities are bound to portions of the law, but exempt from most of it. Under the current Right-to-Know Law, these universities must annually report their IRS form 990 information, salaries of all officers and directors, and top 25 employee salaries. Pitt and Penn State’s annual reports are accessible online.

The schools’ exemptions mean that details about their operations, financial decisions, individual donors and personnel salaries are largely shielded from the public eye. In contrast, the state system universities — such as Slippery Rock and Kutztown — must comply with the full Right-toKnow Law.

It’s worth noting that the state-related universities are bound by the Sunshine Act, an open meetings law that requires their boards of trustees to deliberate and take official action on university business during open and public meetings. The universities are also required to report some information about finances and academic programs through the Pennsylvania Department of Education.

How long have the state-related universities been bound by the Right-to-Know Law?

The law began applying to these schools in 2009 after former Gov. Ed Rendell signed the Open Records Law. Prior to that, Pitt and Penn State were not liable to any state public records law.

At the time, legislators hoped the law would increase university transparency and trust.

University leaders, meanwhile, fought to remain fully exempt from the law. Former Penn State President Graham Spanier worried the law would hurt university operations, reported Penn State’s student newspaper, The Daily Collegian.

“Frankly, we will have to operate in a way that will make us less nimble and less competitive with many other major research universities in the nation,” Spanier said in 2008 testimony to members of the House State Government Committee.

Pitt also voiced opposition to the current law. Paul Supowitz, Pitt’s former vice chancellor for governmental relations who currently serves as the university’s special assistant for strategic initiatives, claimed the law would bring “economic loss, invasion of legitimate privacy interests and threats to the property and safety of individuals and groups within the university community,” reported University Times, Pitt’s faculty and staff newspaper.

What do critics of the universities’ current Right-to-Know requirements say?

Critics like House Republicans and journalists believe the public should have more access to the state-related universities’ records. Melewsky, with the Pennsylvania NewsMedia Association, said the push for more transparency is rooted in the millions of dollars these schools receive from the state and the impact that they have in many Pennsylvanians’ lives.

Since 2008, there have been numerous bills proposed to expand the universities’ coverage under the current public records law, she said.

“[The proposed bills] vary between complete coverage under the Right-to-Know Law and a lesser amount of inclusion, but still more than we have under the current law,” Melewsky said.

A 2022 bill would require the state-related schools to disclose personnel salaries, contract information and budgetary information.

How do other states compare?

Pennsylvania is one of only two states that has public records exemptions for its publicly funded universities. Delaware is the other state.

Why is this a sticking point in the 2023-24 budget process?

House Republicans have become increasingly comfortable with criticizing the state-related schools’ lack of transparency and high price tags. The issue came up during last year’s budget cycle and became even more pronounced in 2023. GOP lawmakers cited cost and transparency as reasons they voted down the universities’ appropriations in July.

State Rep. Eric Nelson, R-Westmoreland, told the Post-Gazette that he believes these schools need to increase transparency if they receive taxpayer dollars. Under Shapiro’s 2023-24 budget proposal, Pitt would get $162 million from the state, while Penn State would receive $259 million.

Some House Democrats, like State Sen. Jay Costa, D-Allegheny, have signaled openness to expanding the universities’ Rightto-Know coverage without withholding funds.

The legislature has yet to approve the state-related universities’ 2023-24 funding. Lawmakers are expected to reconsider funding in September.

How do the universities respond to calls for greater transparency?

Pitt spokesman Jared Stonesifer provided the following statement:

“The University of Pittsburgh is committed to accountability and disclosure of how commonwealth funds are spent. Every penny of Pitt’s general support appropriation is used exclusively to reduce tuition for Pennsylvania students. Beyond the requirements under Pennsylvania’s Right to Know laws, Pitt complies with extensive reporting requirements under state and federal laws, including providing the General Assembly, the Governor’s Office and the Pennsylvania Department of Education with annual financial disclosures and other state-required reports related to Pitt’s appropriation. We look forward to engaging with lawmakers on this topic further as the legislative process continues.”

Penn State spokesman Wyatt DuBois provided the following statement:

“Penn State is subject to the Commonwealth’s Right to Know Law. The General Assembly developed it after careful review of how it should specifically apply to state and local agencies, the Legislature, the judiciary and state-related universities. We appreciate the tailored and principled approach that was taken to make our institutions fully accountable for the taxpayer resources that are invested in them.

“So, for example, the University posts its budget information annually online and is required to report substantial amounts of data — such as expenditures, median and mean salaries of employees, faculty activity and work weeks etc. — through the Stairs Report and Snyder Report; Penn State also posts audited financial statements reflecting the financial status of the University for each fiscal year, and is subject to language within our non-preferred appropriations that makes Penn State accountable to the government.

“We will continue to work with the General Assembly to ensure that we are accountable for the taxpayer resources invested in Penn State and the University is open to working with legislators on legislation that would further enhance public access without overhauling the Right to Know law completely.

Temple spokesman Steve Orbanek provided the following statement:

“Temple University recognizes the importance of both accountability and transparency. State-related universities already are subject to certain provisions of the Right to Know Law and provide robust disclosures to the Commonwealth, including among other things salary information for highest earners, audited financial statements, tax form 990 information, and data on instructional output, faculty salaries, and procurement. We look forward to continued conversations with members of the General Assembly on this topic.

“Temple is immensely grateful for our nearly 60-year partnership with the Commonwealth of Pennsylvania, and for the ongoing financial support the university receives that helps directly reduce tuition costs for Pennsylvania residents.

“State-related universities have experienced delays in receipt of the non-preferred appropriation in the past. When that has occurred, Temple has been able to keep in-state tuition stable while negotiations in Harrisburg are completed.

We remain optimistic that Commonwealth funding will be approved in due course.”

Lincoln University did not respond to a request for comment