VP Whittington testifies against 'open book' bill

The state Senate Education Committee held public hearings yesterday on a bill which could make University budget information public. Senior Vice President Marna Whittington testified before the committee, which sought feedback on the "Higher Education Right-to-Know" bill, slated for consideration by state lawmakers later this fall. The bill would make accounting information public for schools that receive any state funding, including the University. Supporters argue that legislators and taxpayers should know how funds earmarked for higher education are spent, particularly in the wake of major financial scandals at several schools, particularly the University of Pittsburgh. Opponents argued yesterday that the bill would create more trouble for schools than it is worth. The bill would be an addition to state "Sunshine Laws" which open local and state government records and meetings to the public. In her testimony before the committee, Whittington described how the University's state funding fit into the University's budget, and stressed the University's large size -- over 20,000 employees, 20,000 students and 14 labor unions -- in relation to the relatively small amount of state funding it receives. Some officials criticized the scope of the proposal, arguing schools like Penn State, which covers nearly 20 percent of its budget through state allocations, should be held to higher accountability standards than schools such as the University, which receives only three percent, or $36.7 million, of its budget funding from the state. Others said the bill might be more trouble than it is worth. "It would add little to the existing system of public accountability," Temple President Peter Liacouras testified. "It could, on the other hand, impose costly burdens on the university." Administrators said the current bill would put schools at a competitive disadvantage in faculty and staff contract negotiations, since the salaries of other employees would be public knowledge. Some also said it could discourage donations, particularly those from anonymous benefactors who might be forced to reveal their identities under the law. Officials said the cost of making accounting information public, higher labor costs and lost donations could negate the benefits of state funding. "It could end up costing you more money than you're getting [from the state]," Sen. James Rhoades (R-Schuylkill), chairperson of the Education Committee, said last night. Rhoades said that Whittington, as a previous Director of Finance for the state of Delaware, "has gone through this" with schools such as the University of Delaware. He also said Whittington had presented University accountability procedures to the committee which might be used as models when the committee starts revising the bill. "She seemed to have a very good grip on the situation," Rhoades said. Whittington could not be reached for comment last night. Rhoades pointed to the recent scandal at Pitt as the driving force behind the proposed bill. This spring it was revealed that Pitt trustees had offered outgoing President Wesley Posvar a multi-million dollar retirement package and $700,000 in low-interest mortgage loans. Senator Chaka Fattah (D-Philadelphia), who is minority chair of the Senate Education Committee and who represents the University area, declined to comment on the hearings last night, saying a representative attended the meetings in his place. Fattah has previously stated the measure could put universities at a "competitive disadvantage" and act as a "disincentive." The Associated Press contributed to this story.

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