PRIOR PRINTER'S NO. 3754                      PRINTER'S NO. 3831



No. 2752 Session of 1996

        INTRODUCED BY PITTS, JUNE 13, 1996

           JUNE 24, 1996

                                  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, 1996,
    19  to June 30, 1997, for the purposes and in the amounts as shown:

     1     (1)  For educational and general expenses......  $214,690,000
     2     (2)  For medical education.....................     4,425,000
     3     (3)  For children's hospital...................     4,659,000
     4     (4)  For the Central Pennsylvania Psychiatric
     5  Institute.........................................     1,568,000
     6     (5)  For the cost of agricultural research.....    18,666,000  <--
     7     (5)  FOR THE COST OF AGRICULTURAL RESEARCH.....    20,386,000  <--
     8     (6)  For cost of agricultural extension
     9  services..........................................    20,183,000  <--
    10  SERVICES..........................................    22,043,000  <--
    11     (7)  To enhance the recruitment and retention
    12  of disadvantaged students.........................       321,000
    13     (8)  For the Pennsylvania College of
    14  Technology........................................    11,295,000
    15     (9)  For debt service related to the former
    16  Williamsport Area Community College...............     1,592,000
    17     Section 2.  Payments to The Pennsylvania State University on
    18  account of the appropriations for all items as provided in
    19  section 1 shall be made on the basis of costs during the fiscal
    20  year.
    21     Section 3.  If necessary, The Pennsylvania State University
    22  may transfer funds among the appropriations listed in section
    23  1(1), (3) and (4), provided that the aggregate amount
    24  transferred into or out of each appropriation during the fiscal
    25  year shall not exceed 5% of the amount specifically appropriated
    26  for that purpose.
    27     Section 4.  (a)  Payments to The Pennsylvania State
    28  University of the appropriations provided in section 1 shall be
    29  made monthly during the fiscal year.
    30     (b)  Such monthly payments shall be made in accordance with
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     1  the provisions of section 2 on the basis of estimated costs. The
     2  estimate of costs shall be submitted by The Pennsylvania State
     3  University to the Secretary of Education, the General Assembly
     4  and the State Treasurer not later than 30 days prior to the date
     5  on which such payment is to be made.
     6     Section 5.  Notwithstanding any provision of the General
     7  Appropriation Act of 1996 relating to the payment of retirement
     8  expenses, the Trustees of The Pennsylvania State University
     9  shall make all required payments to the State Employees'
    10  Retirement Fund from the funds appropriated pursuant to this
    11  act.
    12     Section 6.  (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 7.  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 programs
     9  except the Doctor of Medicine program. The report, to be
    10  submitted prior to September 1, 1997, shall cover the 12-month
    11  period beginning with the summer term 1996 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
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     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 8.  In addition to the requirements in section 7
    18  relative to this appropriation, the report covering the 12-month
    19  period beginning with the summer term 1996 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 1992, 1993,
    25  1994, 1995 and 1996 and estimated 1997.
    26     Section 9.  (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 of State appropriations,
     6  tuition and fees supporting educational and general categories
     7  as defined in the Higher Education Finance Manual, Department of
     8  Health, Education and Welfare, 1975, or disbursement, supported
     9  by State appropriations, tuition or fees, to support a defined
    10  project or program under subsection (b)(3).
    11     "Revenue."  All State appropriations and tuition and fees.
    12     (b)  The Pennsylvania State University shall disclose the
    13  following:
    14     (1)  Revenue and expenditure budgets of the university's
    15  academic and administrative support units for the current fiscal
    16  year.
    17     (2)  The actual revenue and expenditures for the prior year
    18  in the same format as the information reported under paragraph
    19  (1).
    20     (3)  For any defined project or program which is the subject
    21  of a specific line item appropriation from the General Fund, the
    22  university shall disclose the following:
    23     (i)  Revenue and expenditure budgets of the defined program
    24  or project for the current fiscal year.
    25     (ii)  The actual revenue and expenditures of the defined
    26  program or project for the prior year in the same format as the
    27  information reported under paragraph (1).
    28     (4)  The revenue and expenditures of any auxiliary enterprise
    29  which is directly funded in whole or in part by tuition or a
    30  State appropriation for the current fiscal year.
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     1     (c)  The university shall provide the following additional
     2  information for the prior fiscal year for each academic or
     3  administrative support unit, for each defined project or program
     4  and for any auxiliary enterprise:
     5     (1)  The number of employees by academic rank and by
     6  classification the number of administrators, staff, clerical and
     7  technical service employees.
     8     (2)  Median and mean salary by academic rank and by
     9  classification the median and mean salaries of administrators,
    10  staff, clerical and technical service employees.
    11     (3)  Nonsalary compensation as a percentage of salary.
    12  Nonsalary compensation shall include, but not be limited to,
    13  medical benefits, life insurance benefits, pension benefits,
    14  leave benefits, employer Social Security payments and workers'
    15  compensation benefits.
    16     (4)  A statement of the university's retirement policies.
    17     (5)  A policy statement relating to a reduction of tuition
    18  for employees' family members.
    19     (6)  A list of purchase of service contracts which exceed
    20  $1,000 by category of service, including, but not limited to,
    21  legal, instructional, management, accounting, architecture,
    22  public relations and maintenance. The list shall contain the
    23  name and address of the contractor, a statement of the nature of
    24  the duties of the contractor and the academic and administrative
    25  support unit for which the duties are performed. If a purchase
    26  of service contract exceeds 10% of the total aggregate
    27  expenditure of the contract category per academic or
    28  administrative support unit, then the contracted amount shall
    29  also be listed.
    30     (7)  A list of purchase of goods contracts which exceed
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     1  $1,000. The list shall contain the name and address of the
     2  contractor and a list of the goods purchased and the academic or
     3  administrative support unit for which such goods were
     4  contracted. If a purchase of goods contract exceeds 10% of the
     5  total aggregate expenditure per academic or administrative
     6  support unit, then the contracted amount shall also be listed.
     7     (8)  A list by academic or administrative support unit in the
     8  aggregate, of the expenses of travel, subsistence and lodging,
     9  whether provided or reimbursed.
    10     (d)  The university shall submit a report of the information
    11  under subsections (b) and (c) to the Education Committee of the
    12  Senate and the Appropriations Committee of the Senate and the
    13  Education Committee of the House of Representatives and the
    14  Appropriations Committee of the House of Representatives. In
    15  addition, the university shall submit a copy of the report to
    16  each of the following:
    17     (1)  Governor's Office.
    18     (2)  Secretary of Education.
    19     (3)  State Treasurer.
    20     (4)  Auditor General.
    21     (5)  Joint State Government Commission.
    22  Each such institution shall maintain a copy of the report in the
    23  institution's library and shall submit a copy to each of the
    24  four State regional library resource centers.
    25     (e)  A university's report required to be submitted under
    26  this section shall be submitted within 180 days of the close of
    27  the university's current fiscal year.
    28     (f)  The Joint State Government Commission shall develop a
    29  statistical comparison analysis recognizing differences in
    30  missions from the reports made under this section. A majority of
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     1  the members of the commission may request additional
     2  documentation, except for salary or identity of individuals,
     3  necessary to complete the comparative analysis. The comparison
     4  shall be provided to the Education Committee of the Senate and
     5  the Appropriations Committee of the Senate and the Education
     6  Committee of the House of Representatives and the Appropriations
     7  Committee of the House of Representatives and the four State
     8  regional libraries.
     9     (g)  The university shall make a copy of the minutes of each
    10  public meeting of the institution's board of trustees, as well
    11  as a copy of the institution's integrated postsecondary
    12  education data systems report, available for public inspection
    13  in the institution's library.
    14     Section 10.  The Pennsylvania State University shall provide
    15  full, complete and accurate information as may be required by
    16  the Department of Education or the chairman or the minority
    17  chairman of the Appropriations Committee of the Senate or the
    18  chairman or the minority chairman of the Appropriations
    19  Committee of the House of Representatives.
    20     Section 11.  The Pennsylvania State University shall report
    21  its revenues and expenditures and present its financial
    22  statements required under the provisions of this act in
    23  accordance with generally accepted accounting principles and
    24  procedures for educational institutions as set forth in the
    25  "Higher Education Finance Manual, United States Department of
    26  Health, Education and Welfare (1975)" and the "Commonwealth of
    27  Pennsylvania Budget Instructions for the State System of Higher
    28  Education, State-Related Universities and Non-State-Related
    29  Colleges and Universities."
    30     Section 12.  This act shall take effect July 1, 1996, or
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     1  immediately, whichever is later.

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