Penn State says scandal expenses have hit $3.2 million
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Penn State University said it has paid $3.2 million for legal fees, consultants and public relations firms to address the scandal that exploded with former assistant football coach Jerry Sandusky's Nov. 5 arrest on child sex abuse charges.
The total released late Monday by the university includes costs through December. It was provided as Penn State launched a new website, http://openness.psu.edu, intended to demonstrate increased commitment to public disclosure in the scandal's aftermath.
The site does not reflect all the costs that Penn State faces from the Sandusky matter. For instance, the school said it will not provide the settlement agreement with former Penn State president Graham Spanier, citing confidentiality language. Nor does the site include the settlement agreement with late legendary football coach Joe Paterno.
Mr. Spanier resigned and Mr. Paterno was fired as Penn State faced withering criticism for failure to report to law enforcement a 2002 allegation that Mr. Sandusky assaulted a boy in a campus shower.
The university said it will add information as it becomes available. Penn State spokesman Bill Mahon Monday evening called the site "a work in progress."
The university did provide, among other documents, the employment contract with Penn State's new head football coach, Bill O'Brien, who makes $2.3 million a year; the memorandum of understanding with acting athletic director David Joyner, who is paid $33,000 monthly or $396,000 a year; the contract with Penn State president Rodney Erickson, whose base salary is $515,000 yearly; and an employment agreement with David J. Gray, senior vice president for finance and business, who makes $355,008 annually.
It also provided links to other documents including audited financial statements.
In a rarity for a public university, Penn State enjoys an exemption to nearly all reporting requirements under the state's Right to Know Law, although legislation to change that is pending in both the state House and Senate.
"This new website represents reform and change and our commitment to improve the university's openness with the public," said board of trustees Chairwoman Karen Peetz.
The school said some of the $3,196,517 it has spent for legal, public relations and consulting costs is expected to be reimbursed through insurance policies.
First Published February 14, 2012 12:00 am
