State Senator Concerned About
Financial Fallout from Penn State Scandal
State Sen. Mike Stack today shared his concerns for the Pennsylvania State University’s ability to handle the financial fallout from the sexual abuse scandal in a letter to the university’s new President Rodney Erickson.
“The sexual assault allegations against former coach Jerry Sandusky are appalling, and my thoughts and prayers are with the alleged victims of these atrocities,” said Stack (D-Phila.). “This scandal has rocked Penn State and will have a long-term affect on the institution.”
The senator said he is reaching out to Erickson to start a conversation about how the university intends to handle potential settlements in civil cases brought against the university.
“As more allegations surface and reported victims file civil lawsuits, I am extremely concerned about Penn State’s level of liability coverage,” said Stack, who is the Democratic chairman of the Senate Banking and Insurance Committee. “Penn State must not consider using taxpayer dollars to offset payouts of these lawsuits.”
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Rodney Erickson, President
Pennsylvania State University
201 Old Main
University Park, PA 16802
Dear President Erickson,
I think I speak for everyone in the legislature when I say we understand the difficult role that you have been thrust into. We appreciate your cooperation as we grapple with an understanding of the sexual assault allegations and where to go from here. I’m sure you would agree, my heart and sympathies lay with those who have been affected by these terrible acts. With that said, I have concerns about the financial future of the University that I’d like to bring into question. I am not alone in my concern.
As Minority Chairman of the Senate Banking and Insurance Committee, my concern is in regards to the ability of the University to handle the financial strain of the civil litigation onslaught that is surely coming. Does the University have enough liability insurance to cover itself properly? Since the Commonwealth of Pennsylvania helps fund a portion of the annual budget for PSU, I would like to be clear in my opinion that in no way should taxpayer funds be used to offset the payouts of these lawsuits. While this may be a delicate discussion at the moment, it is one of great concern.
I welcome a response from you at your earliest convenience. If you wish to discuss this matter in person, I will of course make myself available to you. Thank you very much for your time and serious consideration.
Sincerely,
Senator Mike Stack
5th Senatorial District
The original news leader of the Twin Tiers ...
since 1947
“The sexual assault allegations against former coach Jerry Sandusky are appalling, and my thoughts and prayers are with the alleged victims of these atrocities,” said Stack (D-Phila.). “This scandal has rocked Penn State and will have a long-term affect on the institution.”
The senator said he is reaching out to Erickson to start a conversation about how the university intends to handle potential settlements in civil cases brought against the university.
“As more allegations surface and reported victims file civil lawsuits, I am extremely concerned about Penn State’s level of liability coverage,” said Stack, who is the Democratic chairman of the Senate Banking and Insurance Committee. “Penn State must not consider using taxpayer dollars to offset payouts of these lawsuits.”
~~~~
Rodney Erickson, President
Pennsylvania State University
201 Old Main
University Park, PA 16802
Dear President Erickson,
I think I speak for everyone in the legislature when I say we understand the difficult role that you have been thrust into. We appreciate your cooperation as we grapple with an understanding of the sexual assault allegations and where to go from here. I’m sure you would agree, my heart and sympathies lay with those who have been affected by these terrible acts. With that said, I have concerns about the financial future of the University that I’d like to bring into question. I am not alone in my concern.
As Minority Chairman of the Senate Banking and Insurance Committee, my concern is in regards to the ability of the University to handle the financial strain of the civil litigation onslaught that is surely coming. Does the University have enough liability insurance to cover itself properly? Since the Commonwealth of Pennsylvania helps fund a portion of the annual budget for PSU, I would like to be clear in my opinion that in no way should taxpayer funds be used to offset the payouts of these lawsuits. While this may be a delicate discussion at the moment, it is one of great concern.
I welcome a response from you at your earliest convenience. If you wish to discuss this matter in person, I will of course make myself available to you. Thank you very much for your time and serious consideration.
Sincerely,
Senator Mike Stack
5th Senatorial District
The original news leader of the Twin Tiers ...since 1947
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