Updated at 3:21 p.m. Friday
The NCAA appears likely to stay on the course it always intended for how it will disseminate the fine money Penn State owes as part of the NCAA sanctions, even after a state senator announced he plans to propose a bill that would mandate the $60 million Penn State must pay remain in Pennsylvania.
To wit, it still plans on using all funds from the fine to go toward programs designed to prevent child sexual abuse or assist the victims of child sexual abuse nationwide, according to an email Friday from the NCAA.
The NCAA set up a task force in September which will make recommendations for the structure, philosophies and policies for the endowment to the NCAA Executive Committee in early 2013. Once those are approved, it will solicit a third-party endowment administrator, which will choose which nonprofit groups receive funds each year.
The NCAA expects the third-party administrator to be chosen by spring and that several different nonprofit groups will receive funds each year.
At the NCAA’s request, Penn State set aside the first $12 million installment of the fine on Dec. 20 in a money market account to allow sufficient time for the task force to develop policy recommendations that will govern the endowment’s structure and operational philosophies, the organization said.
Members of the task force include:
- Nan Crouter, dean of the college of health and human development at Penn State;
- Rita Hartung Cheng, chancellor of Southern Illinois University at Carbondale;
- Craig Hillemeier, vice dean for clinical affairs at Penn State College of Medicine;
- Brian Gallagher, president and chief executive officer of United Way Worldwide;
- Jane Lowe, team director of Vulnerable Populations Portfolio, The Robert Wood Johnson Foundation;
- Harris Pastides, president, University of South Carolina;
- Bryan Samuels, commissioner of the Administration on Children, Youth and Families, U.S. Department of Health and Human Services;
- Pamela Shifman, director, Initiatives for Girls and Women, NoVo Foundation;
- Raymond Torres, vice president of the Annie E. Casey Foundation and executive director of Casey Family Services;
- Tim White, chancellor of University of California, Riverside (chair)
“Creating an endowment is more complicated than opening up a bank account,” White said in a press release. “The task force must decide how the endowment will be structured and develop philosophies for allocation of funds, as well as create policies for investment and distribution of benefits. We also must consider reporting and accountability standards and choose a third-party administrator.”
According to the NCAA, the task force will determine how much of the endowment will be distributed and how much will remain in the endowment through perpetuity. Additionally, the proceeds may not be used to fund programs at Penn State, and no current sponsored athletics team may be reduced or eliminated to pay the fine.
White said Penn State is on board with the NCAA's course of action.
“Penn State officials have handled this situation with the utmost professionalism and consideration,” he said. “We all want to work together to ensure the funds from this endowment will be used as they are intended, which is to assist programs designed to prevent child sexual abuse and help the victims of child sexual abuse nationwide.”
Earlier at 1:01 p.m. Thursday
One local lawmaker wants to keep the money Penn State owes to the NCAA in Pennsylvania and is willing to take legal action to ensure it remains in state.
Sen. Jake Corman (R-Centre) will introduce legislation next month that will mandate the $60 million fine issued by the NCAA as part of its sanctions package against Penn State be used to fund child sex abuse prevention programs in Pennsylvania, he announced Thursday.
Additionally, Corman plans to file a lawsuit asking the courts to prevent the NCAA from releasing any of the funds to organizations outside the state.
"I believe the fine money, which is coming from Pennsylvania residents, should stay in Pennsylvania and benefit our organizations and children," Corman said in a press release. "Every dollar will continue to go to worthy and valuable child abuse prevention and educational organizations, except this way, the connection between Pennsylvania resident funds and Pennsylvania benefits will be clear."
Corman serves as Chairman of the Senator Appropriations Committee, is a Penn State alumnus and represents the State College area as part of the 34th Senatorial District.
Penn State paid the first of five $12 million installments earlier this month.