PRIOR PRINTER'S NO. 1702 PRINTER'S NO. 2332
No. 1374 Session of 2003
INTRODUCED BY ARGALL, MAY 6, 2003
AS AMENDED ON THIRD CONSIDERATION, HOUSE OF REPRESENTATIVES, JULY 1, 2003
A SUPPLEMENT 1 To the act of April 1, 1863 (P.L.213, No.227), entitled "An act 2 to accept the grant of Public Lands, by the United States, to 3 the several states, for the endowment of Agricultural 4 Colleges," making appropriations for carrying the same into 5 effect; and providing for a basis for payments of such 6 appropriations, for a method of accounting for the funds 7 appropriated and for certain fiscal information disclosure. 8 The General Assembly of the Commonwealth of Pennsylvania 9 hereby enacts as follows: 10 Section 1. In order to carry into effect the act of 11 Congress, approved July 2, 1862, granting public land to the 12 several states for educational purposes, and subsequent acts of 13 Congress related thereto, and the act of the General Assembly of 14 Pennsylvania accepting the provisions and conditions of said 15 acts of Congress and pledging the faith of the State to carry 16 the same into effect, the following sums, or as much thereof as 17 may be necessary, are hereby appropriated to the Trustees of The 18 Pennsylvania State University for the fiscal year July 1, 2003, 19 to June 30, 2004, for the purposes and in the amounts as shown:
1 (1) For educational and general expenses...... $232,508,000 2 (2) For medical education..................... 4,793,000 3 (3) For children's hospital................... 4,793,000 4 (4) For the Central Pennsylvania Psychiatric 5 Institute......................................... 1,864,000 6 (5) For the cost of agricultural research..... 22,922,000 7 (6) For the cost of agricultural extension 8 services.......................................... 26,201,000 9 (7) To enhance the recruitment and retention 10 of disadvantaged students......................... 332,000 11 (8) For the Pennsylvania College of 12 Technology........................................ 11,673,000 13 (9) For debt service related to the former 14 Williamsport Area Community College............... 1,379,000 15 Section 2. Payments to The Pennsylvania State University on 16 account of the appropriations for all items as provided in 17 section 1 shall be made on the basis of costs during the fiscal 18 year. 19 Section 3. If necessary, The Pennsylvania State University 20 may transfer funds among the appropriations listed in section 21 1(1), (4) and (5), provided that the aggregate amount 22 transferred into or out of each appropriation during the fiscal 23 year shall not exceed 5% of the amount specifically appropriated 24 for that purpose. 25 Section 4. (a) Payments to The Pennsylvania State 26 University of the appropriations provided in section 1 shall be 27 made monthly during the fiscal year. 28 (b) Such monthly payments shall be made in accordance with 29 the provisions of section 2 on the basis of estimated costs. The 30 estimate of costs shall be submitted by The Pennsylvania State 20030H1374B2332 - 2 -
1 University to the Secretary of Education, the General Assembly 2 and the State Treasurer not later than 30 days prior to the date 3 on which such payment is to be made. 4 Section 5. (a) EXCEPT AS PROVIDED IN SUBSECTION (C), The <-- 5 Pennsylvania State University shall apply the moneys 6 appropriated by this act only for such purposes as are permitted 7 in this act and shall at all times maintain proper records 8 showing the application of such moneys. Not later than 120 days 9 after the close of the fiscal year to which this act relates, 10 The Pennsylvania State University shall file, with the Secretary 11 of Education, the General Assembly and the Auditor General of 12 the Commonwealth, a statement setting forth the amounts and 13 purposes of all expenditures made from moneys appropriated by 14 this act and other university accounts during said fiscal year, 15 as provided in section 2, used as a basis for receipt of any 16 appropriation during said fiscal year. 17 (b) Such statement of expenditures and costs shall be 18 reviewed by the Auditor General of the Commonwealth, and he 19 shall have the right, in respect to the moneys appropriated by 20 this act, to audit and disallow expenditures made for purposes 21 not permitted by this act and to cause such sums to be recovered 22 and paid by The Pennsylvania State University to the State 23 Treasurer. In respect to expenditures made by the university 24 from moneys other than those appropriated by this act, the 25 Auditor General shall have the right to review only, and he 26 shall file annually with the General Assembly such information 27 concerning such expenditures as the General Assembly or any of 28 its committees may require. 29 (C) ANY MONEYS APPROPRIATED BY THIS ACT THAT ARE APPLIED ON <-- 30 AN INDIVIDUAL BASIS TO STUDENTS, INCLUDING, BUT NOT LIMITED TO 20030H1374B2332 - 3 -
1 STUDENT FINANCIAL ASSISTANCE, SHALL BE APPLIED IN SUCH A MANNER 2 THAT 75% OF THE APPROPRIATED FUNDS ARE USED FOR STUDENTS WHO ARE 3 RESIDENTS OF THIS COMMONWEALTH. 4 Section 6. A report shall be submitted to the Governor and 5 the Appropriations and Education Committees of the Senate and 6 House of Representatives and shall include data for all programs 7 except the Doctor of Medicine program. The report, to be 8 submitted prior to September 1, 2004, shall cover the 12-month 9 period beginning with the summer term 2003 and shall include: 10 (1) The following counts and distributions for each term 11 during the period: 12 (i) The definitions and numbers of faculty members employed 13 full time, of faculty members employed part time, of full-time 14 students enrolled in graduate courses, of full-time students 15 enrolled in undergraduate courses, of part-time students 16 enrolled in graduate courses and of part-time students enrolled 17 in undergraduate courses. 18 (ii) The total numbers of undergraduate student credit 19 hours, divided into lower division and upper division course 20 levels, and of graduate student credit hours, divided into three 21 course levels--master's, first professional and doctoral. 22 (iii) The number of different courses scheduled by level of 23 instruction and the number of sections of individual instruction 24 scheduled by level of instruction, each further subdivided by 25 two-digit Classification of Instructional Program (CIP) 26 categories of instructional programs of higher education as 27 defined by the National Center for Education Statistics, United 28 States Department of Education. 29 (iv) The number of terms scheduled and the dates thereof. 30 (2) For the summer term and the following academic year in 20030H1374B2332 - 4 -
1 total and for each two-digit CIP program category, a 2 classification of faculty members or other professional 3 employees by title, including: professor, associate professor, 4 assistant professor, instructor, lecturer, research associate, 5 librarian and academic administrator; faculty members or other 6 professional employees under each title to be subdivided by type 7 of assignment: teaching and nonteaching; and each such set of 8 faculty members or other professional employees to be further 9 subdivided by type of employment: full-time or part-time; and 10 the following aggregates for each such subdivided 11 classification: 12 (i) The number of faculty and other professional employees 13 and their full-time equivalence in instructional and 14 noninstructional functions. 15 (ii) The sum of credits assigned to undergraduate classroom 16 courses and the sum of credits assigned to graduate classroom 17 courses taught, divided into lower division, upper division, 18 master's, first professional and doctoral course levels. 19 (iii) The sum of credits assigned to undergraduate 20 individual instruction courses and the sum of credits assigned 21 to graduate individual instruction courses taught, divided into 22 lower division, upper division, master's, first professional and 23 doctoral course levels. 24 (iv) The sum of undergraduate classroom student credit hours 25 and the sum of graduate classroom student credit hours 26 generated, divided into lower division, upper division, 27 master's, first professional and doctoral course levels. 28 (v) The sum of undergraduate individual instruction student 29 credit hours and the sum of graduate individual instruction 30 student credit hours generated, divided into lower division, 20030H1374B2332 - 5 -
1 upper division, master's, first professional and doctoral course 2 levels. 3 (vi) The total salary paid for instructional functions and 4 for noninstructional functions and the amount of this salary 5 paid for each of these functions from university funds, Federal 6 funds and other funds. 7 (3) For each term of the period covered for each faculty 8 member employed full time identified by two-digit CIP program 9 category and title, the report shall contain an analysis of the 10 average hours per week spent in university-related activities, 11 stating specifically hours spent in undergraduate classroom 12 contact and graduate classroom contact, hours spent in 13 preparation, hours spent in research and hours spent in public 14 service. 15 Section 7. In addition to the requirements in section 6 16 relative to this appropriation, the report covering the 12-month 17 period beginning with the summer term 2003 shall include for all 18 programs of the university: 19 (1) Minimum number of credits required for a baccalaureate 20 degree and for a master's degree. 21 (2) Number of bachelor's degrees, master's degrees, first 22 professional degrees and doctoral degrees awarded in 1999, 2000, 23 2001, 2002, 2003 and estimated 2004. 24 Section 8. (a) The following words and phrases when used in 25 this section shall have the meanings given to them in this 26 subsection unless the context clearly indicates otherwise: 27 "Academic and administrative support units." Any 28 organizational entity, as defined in the organizational manual 29 of the university, that reports directly to the president of the 30 university, chief academic officer or vice president, including 20030H1374B2332 - 6 -
1 the office of the president, chief academic officer and vice 2 president. 3 "Expenditures." Disbursements or payments of State 4 appropriations, tuition and fees supporting operational, 5 educational or other general categories of expenses as defined 6 in: the generally accepted accounting principles as prescribed 7 by the National Association of College and University Business 8 Officers, the American Institute of Certified Public 9 Accountants, or by their successors, or by any other recognized 10 authoritative body; the "Commonwealth of Pennsylvania Budget 11 Instructions for the State System of Higher Education, State- 12 Related Universities and Non-State-Related Colleges and 13 Universities"; and, the financial reporting policies and 14 standards promulgated by the Commonwealth of Pennsylvania and by 15 the Federal Government that apply to the Pennsylvania State 16 University. 17 "Revenue." All State appropriations and tuition and fees. 18 (b) The Pennsylvania State University shall disclose the 19 following: 20 (1) Revenue and expenditure budgets of the university's 21 academic and administrative support units for the current fiscal 22 year. 23 (2) The actual revenue and expenditures for the prior year 24 in the same format as the information reported under paragraph 25 (1). 26 (3) For any defined project or program which is the subject 27 of a specific line item appropriation from the General Fund, the 28 university shall disclose the following: 29 (i) Revenue and expenditure budgets of the defined program 30 or project for the current fiscal year. 20030H1374B2332 - 7 -
1 (ii) The actual revenue and expenditures of the defined 2 program or project for the prior year in the same format as the 3 information reported under paragraph (1). 4 (4) The revenue and expenditures of any auxiliary enterprise 5 which is directly funded in whole or in part by tuition or a 6 State appropriation for the current fiscal year. 7 (c) The university shall provide the following additional 8 information for the prior fiscal year for each academic or 9 administrative support unit, for each defined project or program 10 and for any auxiliary enterprise: 11 (1) The number of employees by academic rank and by 12 classification the number of administrators, staff, clerical and 13 technical service employees. 14 (2) Median and mean salary by academic rank and by 15 classification the median and mean salaries of administrators, 16 staff, clerical and technical service employees. 17 (3) Nonsalary compensation as a percentage of salary. 18 Nonsalary compensation shall include, but not be limited to, 19 medical benefits, life insurance benefits, pension benefits, 20 leave benefits, employer Social Security payments and workers' 21 compensation benefits. 22 (4) A statement of the university's retirement policies. 23 (5) A policy statement relating to a reduction of tuition 24 for employees' family members. 25 (6) A list of purchase of service contracts which exceed 26 $1,000 by category of service, including, but not limited to, 27 legal, instructional, management, accounting, architecture, 28 public relations and maintenance. The list shall contain the 29 name and address of the contractor, a statement of the nature of 30 the duties of the contractor and the academic and administrative 20030H1374B2332 - 8 -
1 support unit for which the duties are performed. If a purchase 2 of service contract exceeds 10% of the total aggregate 3 expenditure of the contract category per academic or 4 administrative support unit, then the contracted amount shall 5 also be listed. 6 (7) A list of purchase of goods contracts which exceed 7 $1,000. The list shall contain the name and address of the 8 contractor and a list of the goods purchased and the academic or 9 administrative support unit for which such goods were 10 contracted. If a purchase of goods contract exceeds 10% of the 11 total aggregate expenditure per academic or administrative 12 support unit, then the contracted amount shall also be listed. 13 (8) A list by academic or administrative support unit in the 14 aggregate, of the expenses of travel, subsistence and lodging, 15 whether provided or reimbursed. 16 (d) The university shall submit a report of the information 17 under subsections (b) and (c) to the Education Committee of the 18 Senate and the Appropriations Committee of the Senate and the 19 Education Committee of the House of Representatives and the 20 Appropriations Committee of the House of Representatives. In 21 addition, the university shall submit a copy of the report to 22 each of the following: 23 (1) Governor's Office. 24 (2) Secretary of Education. 25 (3) State Treasurer. 26 (4) Auditor General. 27 (5) Joint State Government Commission. 28 Each such institution shall maintain a copy of the report in the 29 institution's library and shall submit a copy to each of the 30 four State regional library resource centers. 20030H1374B2332 - 9 -
1 (e) A university's report required to be submitted under 2 this section shall be submitted within 180 days of the close of 3 the university's current fiscal year. 4 (f) The Joint State Government Commission shall develop a 5 statistical comparison analysis recognizing differences in 6 missions from the reports made under this section. A majority of 7 the members of the commission may request additional 8 documentation, except for salary or identity of individuals, 9 necessary to complete the comparative analysis. The comparison 10 shall be provided to the Education Committee of the Senate and 11 the Appropriations Committee of the Senate and the Education 12 Committee of the House of Representatives and the Appropriations 13 Committee of the House of Representatives and the four State 14 regional libraries. 15 (g) The university shall make a copy of the minutes of each 16 public meeting of the institution's board of trustees, as well 17 as a copy of the institution's integrated postsecondary 18 education data systems report, available for public inspection 19 in the institution's library. 20 Section 9. The Pennsylvania State University shall provide 21 full, complete and accurate information as may be required by 22 the Department of Education or the chairman or the minority 23 chairman of the Appropriations Committee of the Senate or the 24 chairman or the minority chairman of the Appropriations 25 Committee of the House of Representatives. 26 Section 10. The Pennsylvania State University shall present 27 and report its financial statements required under the 28 provisions of this act in accordance with: the generally 29 accepted accounting principles as prescribed by the National 30 Association of College and University Business Officers, the 20030H1374B2332 - 10 -
1 American Institute of Certified Public Accountants, or their 2 successors, or by any other recognized authoritative body; the 3 "Commonwealth of Pennsylvania Budget Instructions for the State 4 System of Higher Education, State-Related Universities and Non- 5 State-Related Colleges and Universities"; and, the financial 6 reporting policies and standards promulgated by the Commonwealth 7 of Pennsylvania and by the Federal Government that apply to the 8 Pennsylvania State University. 9 Section 11. The Pennsylvania State University shall make all 10 articulation agreements with other higher education institutions 11 available on the Internet. 12 Section 12. This act shall take effect July 1, 2003, or 13 immediately, whichever is later. C6L84SFL/20030H1374B2332 - 11 -