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        PRIOR PRINTER'S NO. 857                       PRINTER'S NO. 2405

THE GENERAL ASSEMBLY OF PENNSYLVANIA


HOUSE BILL

No. 824 Session of 2005


        INTRODUCED BY FEESE, MARCH 14, 2005

        AS RE-REPORTED FROM COMMITTEE ON APPROPRIATIONS, HOUSE OF
           REPRESENTATIVES, AS AMENDED, JUNE 29, 2005

                                  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, 2005,
    19  to June 30, 2006, for the purposes and in the amounts as shown:


     1     (1)  For educational and general expenses......  $246,002,000  <--
     2     (2)  For the cost of agricultural research.....    23,094,000
     3     (3)  For the cost of agricultural extension
     4  services..........................................    27,787,000
     5     (4)  To enhance the recruitment and retention
     6  of disadvantaged students.........................       434,000
     7     (5)  For the Pennsylvania College of
     8  Technology........................................    11,761,000
     9     (1)  FOR EDUCATION AND GENERAL EXPENSES........  $247,208,000  <--
    10     (2)  FOR MEDICAL EDUCATION.....................     4,829,000
    11     (3)  FOR CHILDREN'S HOSPITAL...................     4,829,000
    12     (4)  FOR THE CENTRAL PENNSYLVANIA PSYCHIATRIC
    13  INSTITUTE.........................................     1,878,000
    14     (5)  FOR THE COST OF AGRICULTURAL RESEARCH.....    23,471,000
    15     (6)  FOR THE COST OF AGRICULTURAL EXTENSION
    16  SERVICES..........................................    28,164,000
    17     (7)  TO ENHANCE THE RECRUITMENT AND RETENTION
    18  OF DISADVANTAGED STUDENTS.........................       434,000
    19     (8)  FOR THE PENNSYLVANIA COLLEGE OF
    20  TECHNOLOGY........................................    12,114,000
    21     (6) (9)  For debt service related to the former                <--
    22  Williamsport Area Community College...............     1,389,000
    23     Section 2.  Payments to The Pennsylvania State University on
    24  account of the appropriations for all items as provided in
    25  section 1 shall be made on the basis of costs during the fiscal
    26  year.
    27     Section 3.  If necessary, The Pennsylvania State University
    28  may transfer funds listed in section 1(1) to the appropriation
    29  listed in section 1(2), (3), (4), (5) and (6), (6), (7), (8) AND  <--
    30  (9), provided that the aggregate amount transferred out of
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     1  section 1(1) shall not exceed 5% of the amount specifically
     2  appropriated for that purpose.
     3     Section 4.  (a)  Payments to The Pennsylvania State
     4  University of the appropriations provided in section 1 shall be
     5  made monthly during the fiscal year.
     6     (b)  Such monthly payments shall be made in accordance with
     7  the provisions of section 2 on the basis of estimated costs. The
     8  estimate of costs shall be submitted by The Pennsylvania State
     9  University to the Secretary of Education, the General Assembly
    10  and the State Treasurer not later than 30 days prior to the date
    11  on which such payment is to be made.
    12     Section 5.  (a)  The Pennsylvania State University shall
    13  apply the moneys appropriated by this act only for such purposes
    14  as are permitted in this act and shall at all times maintain
    15  proper records showing the application of such moneys. Not later
    16  than 120 days after the close of the fiscal year to which this
    17  act relates, The Pennsylvania State University shall file, with
    18  the Secretary of Education, the General Assembly and the Auditor
    19  General of the Commonwealth, a statement setting forth the
    20  amounts and purposes of all expenditures made from moneys
    21  appropriated by this act and other university accounts during
    22  said fiscal year, as provided in section 2, used as a basis for
    23  receipt of any appropriation during said fiscal year.
    24     (b)  Such statement of expenditures and costs shall be
    25  reviewed by the Auditor General of the Commonwealth, and he
    26  shall have the right, in respect to the moneys appropriated by
    27  this act, to audit and disallow expenditures made for purposes
    28  not permitted by this act and to cause such sums to be recovered
    29  and paid by The Pennsylvania State University to the State
    30  Treasurer. In respect to expenditures made by the university
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     1  from moneys other than those appropriated by this act, the
     2  Auditor General shall have the right to review only, and he
     3  shall file annually with the General Assembly such information
     4  concerning such expenditures as the General Assembly or any of
     5  its committees may require.
     6     Section 6.  A report shall be submitted to the Governor and
     7  the Appropriations and Education Committees of the Senate and
     8  House of Representatives and shall include data for all
     9  programs. The report, to be submitted prior to September 1,
    10  2006, shall cover the 12-month period beginning with the summer
    11  term 2005 and shall include:
    12     (1)  The following counts and distributions for each term
    13  during the period:
    14     (i)  The definitions and numbers of faculty members employed
    15  full time, of faculty members employed part time, of full-time
    16  students enrolled in graduate courses, of full-time students
    17  enrolled in undergraduate courses, of part-time students
    18  enrolled in graduate courses and of part-time students enrolled
    19  in undergraduate courses.
    20     (ii)  The total numbers of undergraduate student credit
    21  hours, divided into lower division and upper division course
    22  levels, and of graduate student credit hours, divided into three
    23  course levels--master's, first professional and doctoral.
    24     (iii)  The number of different courses scheduled by level of
    25  instruction and the number of sections of individual instruction
    26  scheduled by level of instruction, each further subdivided by
    27  two-digit Classification of Instructional Program (CIP)
    28  categories of instructional programs of higher education as
    29  defined by the National Center for Education Statistics, United
    30  States Department of Education.
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     1     (iv)  The number of terms scheduled and the dates thereof.
     2     (2)  For the summer term and the following academic year in
     3  total and for each two-digit CIP program category, a
     4  classification of faculty members or other professional
     5  employees by title, including: professor, associate professor,
     6  assistant professor, instructor, lecturer, research associate,
     7  librarian and academic administrator; faculty members or other
     8  professional employees under each title to be subdivided by type
     9  of assignment: teaching and nonteaching; and each such set of
    10  faculty members or other professional employees to be further
    11  subdivided by type of employment: full-time or part-time; and
    12  the following aggregates for each such subdivided
    13  classification:
    14     (i)  The number of faculty and other professional employees
    15  and their full-time equivalence in instructional and
    16  noninstructional functions.
    17     (ii)  The sum of credits assigned to undergraduate classroom
    18  courses and the sum of credits assigned to graduate classroom
    19  courses taught, divided into lower division, upper division,
    20  master's, first professional and doctoral course levels.
    21     (iii)  The sum of credits assigned to undergraduate
    22  individual instruction courses and the sum of credits assigned
    23  to graduate individual instruction courses taught, divided into
    24  lower division, upper division, master's, first professional and
    25  doctoral course levels.
    26     (iv)  The sum of undergraduate classroom student credit hours
    27  and the sum of graduate classroom student credit hours
    28  generated, divided into lower division, upper division,
    29  master's, first professional and doctoral course levels.
    30     (v)  The sum of undergraduate individual instruction student
    20050H0824B2405                  - 5 -     

     1  credit hours and the sum of graduate individual instruction
     2  student credit hours generated, divided into lower division,
     3  upper division, master's, first professional and doctoral course
     4  levels.
     5     (vi)  The total salary paid for instructional functions and
     6  for noninstructional functions and the amount of this salary
     7  paid for each of these functions from university funds, Federal
     8  funds and other funds.
     9     (3)  For each term of the period covered for each faculty
    10  member employed full time identified by two-digit CIP program
    11  category and title, the report shall contain an analysis of the
    12  average hours per week spent in university-related activities,
    13  stating specifically hours spent in undergraduate classroom
    14  contact and graduate classroom contact, hours spent in
    15  preparation, hours spent in research and hours spent in public
    16  service.
    17     Section 7.  In addition to the requirements in section 6
    18  relative to this appropriation, the report covering the 12-month
    19  period beginning with the summer term 2005 shall include for all
    20  programs of the university:
    21     (1)  Minimum number of credits required for a baccalaureate
    22  degree and for a master's degree.
    23     (2)  Number of bachelor's degrees, master's degrees, first
    24  professional degrees and doctoral degrees awarded in 2001, 2002,
    25  2003, 2004, 2005 and estimated 2006.
    26     Section 8.  (a)  The following words and phrases when used in
    27  this section shall have the meanings given to them in this
    28  subsection unless the context clearly indicates otherwise:
    29     "Academic and administrative support units."  Any
    30  organizational entity, as defined in the organizational manual
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     1  of the university, that reports directly to the president of the
     2  university, chief academic officer or vice president, including
     3  the office of the president, chief academic officer and vice
     4  president.
     5     "Expenditures."  Disbursements or payments of State
     6  appropriations, tuition and fees supporting operational,
     7  educational or other general categories of expenses as defined
     8  in: the generally accepted accounting principles as prescribed
     9  by the National Association of College and University Business
    10  Officers, the American Institute of Certified Public
    11  Accountants, or by their successors, or by any other recognized
    12  authoritative body; the "Commonwealth of Pennsylvania Budget
    13  Instructions for the State System of Higher Education, State-
    14  Related Universities and Non-State-Related Colleges and
    15  Universities"; and, the financial reporting policies and
    16  standards promulgated by the Commonwealth of Pennsylvania and by
    17  the Federal Government that apply to the Pennsylvania State
    18  University.
    19     "Revenue."  All State appropriations and tuition and fees.
    20     (b)  The Pennsylvania State University shall disclose the
    21  following:
    22     (1)  Revenue and expenditure budgets of the university's
    23  academic and administrative support units for the current fiscal
    24  year.
    25     (2)  The actual revenue and expenditures for the prior year
    26  in the same format as the information reported under paragraph
    27  (1).
    28     (3)  For any defined project or program which is the subject
    29  of a specific line item appropriation from the General Fund, the
    30  university shall disclose the following:
    20050H0824B2405                  - 7 -     

     1     (i)  Revenue and expenditure budgets of the defined program
     2  or project for the current fiscal year.
     3     (ii)  The actual revenue and expenditures of the defined
     4  program or project for the prior year in the same format as the
     5  information reported under paragraph (1).
     6     (4)  The revenue and expenditures of any auxiliary enterprise
     7  which is directly funded in whole or in part by tuition or a
     8  State appropriation for the current fiscal year.
     9     (c)  The university shall provide the following additional
    10  information for the prior fiscal year for each academic or
    11  administrative support unit, for each defined project or program
    12  and for any auxiliary enterprise:
    13     (1)  The number of employees by academic rank and by
    14  classification the number of administrators, staff, clerical and
    15  technical service employees.
    16     (2)  Median and mean salary by academic rank and by
    17  classification the median and mean salaries of administrators,
    18  staff, clerical and technical service employees.
    19     (3)  Nonsalary compensation as a percentage of salary.
    20  Nonsalary compensation shall include, but not be limited to,
    21  medical benefits, life insurance benefits, pension benefits,
    22  leave benefits, employer Social Security payments and workers'
    23  compensation benefits.
    24     (4)  A statement of the university's retirement policies.
    25     (5)  A policy statement relating to a reduction of tuition
    26  for employees' family members.
    27     (6)  A list of purchase of service contracts which exceed
    28  $1,000 by category of service, including, but not limited to,
    29  legal, instructional, management, accounting, architecture,
    30  public relations and maintenance. The list shall contain the
    20050H0824B2405                  - 8 -     

     1  name and address of the contractor, a statement of the nature of
     2  the duties of the contractor and the academic and administrative
     3  support unit for which the duties are performed. If a purchase
     4  of service contract exceeds 10% of the total aggregate
     5  expenditure of the contract category per academic or
     6  administrative support unit, then the contracted amount shall
     7  also be listed.
     8     (7)  A list of purchase of goods contracts which exceed
     9  $1,000. The list shall contain the name and address of the
    10  contractor and a list of the goods purchased and the academic or
    11  administrative support unit for which such goods were
    12  contracted. If a purchase of goods contract exceeds 10% of the
    13  total aggregate expenditure per academic or administrative
    14  support unit, then the contracted amount shall also be listed.
    15     (8)  A list by academic or administrative support unit in the
    16  aggregate, of the expenses of travel, subsistence and lodging,
    17  whether provided or reimbursed.
    18     (d)  The university shall submit a report of the information
    19  under subsections (b) and (c) to the Education Committee of the
    20  Senate and the Appropriations Committee of the Senate and the
    21  Education Committee of the House of Representatives and the
    22  Appropriations Committee of the House of Representatives. In
    23  addition, the university shall submit a copy of the report to
    24  each of the following:
    25     (1)  Governor's Office.
    26     (2)  Secretary of Education.
    27     (3)  State Treasurer.
    28     (4)  Auditor General.
    29     (5)  Joint State Government Commission.
    30  Each such institution shall maintain a copy of the report in the
    20050H0824B2405                  - 9 -     

     1  institution's library and shall submit a copy to each of the
     2  four State regional library resource centers.
     3     (e)  A university's report required to be submitted under
     4  this section shall be submitted within 180 days of the close of
     5  the university's current fiscal year.
     6     (f)  The Joint State Government Commission shall develop a
     7  statistical comparison analysis recognizing differences in
     8  missions from the reports made under this section. A majority of
     9  the members of the commission may request additional
    10  documentation, except for salary or identity of individuals,
    11  necessary to complete the comparative analysis. The comparison
    12  shall be provided to the Education Committee of the Senate and
    13  the Appropriations Committee of the Senate and the Education
    14  Committee of the House of Representatives and the Appropriations
    15  Committee of the House of Representatives and the four State
    16  regional libraries.
    17     (g)  The university shall make a copy of the minutes of each
    18  public meeting of the institution's board of trustees, as well
    19  as a copy of the institution's integrated postsecondary
    20  education data systems report, available for public inspection
    21  in the institution's library.
    22     Section 9.  The Pennsylvania State University shall provide
    23  full, complete and accurate information as may be required by
    24  the Department of Education or the chairman or the minority
    25  chairman of the Appropriations Committee of the Senate or the
    26  chairman or the minority chairman of the Appropriations
    27  Committee of the House of Representatives.
    28     Section 10.  The Pennsylvania State University shall present
    29  and report its financial statements required under the
    30  provisions of this act in accordance with: the generally
    20050H0824B2405                 - 10 -     

     1  accepted accounting principles as prescribed by the National
     2  Association of College and University Business Officers, the
     3  American Institute of Certified Public Accountants, or their
     4  successors, or by any other recognized authoritative body; the
     5  "Commonwealth of Pennsylvania Budget Instructions for the State
     6  System of Higher Education, State-Related Universities and Non-
     7  State-Related Colleges and Universities"; and, the financial
     8  reporting policies and standards promulgated by the Commonwealth
     9  of Pennsylvania and by the Federal Government that apply to the
    10  Pennsylvania State University.
    11     Section 11.  The Pennsylvania State University shall make all
    12  articulation agreements with other higher education institutions
    13  available on the Internet.
    14     Section 12.  This act shall take effect July 1, 2005, or
    15  immediately, whichever is later.










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