After a three year legislative battle, our tireless efforts paid off as Governor Jerry Brown signed a bill to bring greater transparency and accountability to California’s public higher education institutions – University of California, California State University, and the state’s community college system.
Senate Bill 8, which I authored and introduced, will ensure UC, CSU and the community college auxiliaries and foundations adhere to state public records laws. Under SB 8, all financial records, contracts, and correspondence would be subject to public disclosure upon request.
The bill also protects the anonymity of donors except in situations where there is a quid pro quo in which the donor receives something from the university valued at over $2500 or in which the donor receives a sole source (no-bid) contract within five years of the donation. Anonymity would not be provided to any donor who attempts to influence curriculum or university operations.
Finally, we will have real transparency at our public universities. While this law does not technically go into effect until January 1, I am urging the UC and CSU to immediately begin complying and providing sunshine to the actions of their foundations and auxiliary organizations.
The most recent scandal of an auxiliary organization made national headlines last year when the CSU Stanislaus Foundation negotiated a speaking contract with Sarah Palin. Students found parts of her contract as well as shredded documents in a campus Dumpster after CSU refused to disclose her compensation. After a lawsuit filed by CalAware, a judge ruled that the CSU acted illegally and forced them to disclose the full contract.
Despite overwhelming bipartisan support, my two previous legislative efforts were vetoed by former Governor Arnold Schwarzenegger. This has been a long fight, but I am proud of our coalition of open government advocates, students, faculty and workers who have stayed so persistent in helping protect the public trust.
“We are delighted that the governor agreed that the activities and operations of these quasi-public entities should be brought out of the shadows,” said Jim Ewert, General Counsel for the California Newspaper Publishers Association. “CNPA also thanks Senator Yee for his dedication to the issue and persistence over the last three years to ensure that these entities operate transparently.”
“Senator Yee deserves special thanks for his tenacious efforts on behalf of the faculty, staff, and students of the CSU,” said Lillian Taiz, a CSU professor and President of the California Faculty Association. “Three years of hard work and dedication have finally culminated in a very real victory for transparency and accountability.”
For years, foundations and auxiliaries of our state’s public colleges and universities have been able to hide billions of dollars from public scrutiny. According to the CSU Chancellor’s Office, in 2009, 20 percent of its $6.7 billion budget, or $1.34 billion, was held in their 87 auxiliaries and foundations.
Incidents at several campuses across the state demonstrated the need for increased public oversight and accountability provided by this legislation. At San Francisco City College, a campus executive has been indicted for using money from the San Francisco City College Foundation for personal and political purposes. At San Jose/Evergreen Community College, the Chancellor was found to have engaged in lavish travel and other examples of financial impropriety that prompted her resignation. Since local community college campus auxiliaries are already subject to the CPRA, these instances of waste and abuse have led to the parties being held to account.
In April, longtime open government advocate Richard McKee passed away. In his honor, I have named SB 8, “The Richard McKee Transparency Act of 2011.”
Rich McKee was one of our state’s strongest champions for open government. His passion helped ensure greater public access and accountability of government agencies throughout California. Whether you knew Rich or not, you benefitted from his activism. Our democracy is significantly better because of the work of Rich McKee and that is why he will be so greatly missed by all those who care about government transparency. This bill is a fitting tribute to his legacy.
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