SSU cheers changes to bill that expands public records law

<p>Sonoma State University faculty members on Thursday applauded the decision by state university officials to reverse course and support a bill that would increase financial transparency at public universities.</p><p>“For those of us who want access to Sonoma State University documents this is great news,” said history professor Bob Karlsrud, a longtime critic of the SSU administration's financial practices.</p><p>SB 8, introduced by Sen. Leland Yee, D-San Francisco, had been opposed by the California State University and the University of California.</p><p>It would bring academic foundations and other nonprofit campus auxiliary organizations under requirements of California public records laws.</p><p>Former Academic Senate Chairwoman Susan Moulton said with the CSU system reeling from budget cuts, the legislation is especially important as decisions are made on where to cut and spend.</p><p>“We need fiscal transparency in this time of fiscal uncertainty,” she said.</p><p>SSU administrators also endorsed the development, saying it met everyone's needs.</p><p>“I think it's terrific because it achieves mutual goals in terms of transparency but also protecting donor privacy which is very important to us,” said Patricia McNeill, SSU's development director and presdent of the academic foundation.</p><p>The CSU and the UC dropped their opposition to the bill after amendments regarding donor privacy were made. Gov. Jerry Brown is expected to sign it into law.</p><p>After strong lobbying from the CSU and UC, former Gov. Arnold Schwarzenegger vetoed similar legislation authored by Yee and passed by lawmakers in 2009 and 2010.</p><p>Yee has cited the SSU Academic Foundation, which oversees an endowment of $28 million, in arguing for his bill. The foundation came under fire in 2009 for private loans it made to board members.</p><p>A prominent Sonoma County real estate developer, Clem Carinalli, received more than $9 million in foundation loans. He later filed for personal bankruptcy and defaulted on a $1.25 million loan.</p><p>The foundation's reluctance to disclose details about the loans infuriated critics and became a rallying point for supporters of an earlier Yee bill.</p><p>“We know that there's a quite bit of money that is controlled via the foundations and auxiliaries with no real public accountability, and the Sonoma State situation was certainly one of those that the public has a right to know about,” said Yee spokesman Adam Keigwin.</p><p>McNeill, however, said that even if there had been such a law in place during the Carinalli controversy, the university and foundation likely would have done nothing different.</p><p>“I thought that we were extraordinarily forthcoming about those loans,” she said.</p><p>CSU and UC officials had argued that forcing foundations to comply with the state's public records law would discourage donors who preferred to remain anonymous.</p><p>The compromise shields the identities of contributors unless a donor receives in return a gift valued at over $2,500, receives a no-bid contract within five years of donating, or tries to influence curriculum or university operations.</p><p>“Our issues with the bill were in the areas of donor and vendor privacy. With the new amendments they're going to clear that up,” said Mike Uhlenkamp, a CSU spokesman.</p><p>At SSU, faculty and students said that if the bill becomes law, it would offer a way to gain additional information on a number of controversial issues.</p><p>“That will definitely help,” said freshman Anthony Gallino, who has a pending request for university auxiliary documents related to an April election in which students voted to assess themselves a $300 a year fee for a $65 million new student center.</p><p>Gallino has questioned whether the SSU auxiliary organizations — which run food, parking, housing and bookstore operations — played an improper role in influencing the election.</p><p>For years, faculty critics of SSU President Ruben Armiñana have charged that the administration has shifted funds from academics to other areas of the university.</p><p>The legislation, Moulton said, will help clarify the university's spending as class sizes are increased and lecturers are laid off.</p><p>“I am hopeful it will shed light on the administrative funding priorities on this campus and others within the CSU,” she said.</p>