May 29, 2007

To the Editor:

As one of the critics of the Pennsylvania Higher Education Assistance Agency (PHEAA), we were disappointed that the Editorial Board opted to overlook our comprehensive program for reform. In fact, your publication as well as PHEAA were provided with a copy of our "12 Step Taxpayer Plan to Revamp the Pennsylvania Higher Education Assistance Agency." We have yet to hear back from Mr. Willey or PHEAA, but remain open to constructive engagement.

I hope you'll share our proposal with your readership so that they have the opportunity to evaluate both sides of this important issue.

1) No individual indicted or arraigned by state or federal authorities for felonious conduct can continue to serve on the Board. However, Board Members  should only be required to take a leave of absence until the matter is resolved. Full resignation from the Board should only be required in the event of being found guilty of a felony or an offense involving moral turpitude.

2) The Board should be reduced from 20 to nine (9) members. Members of the Board shall serve no more than three consecutive four-year terms and no more than a total of 12 years.

3) The Board should be composed of directors with appropriate skill sets in accounting, community banking, economics, education, finance, marketing, law or  statistics.
Board members will be eligible for annual compensation and business meeting stipends as well as reimbursement for legitimate expenses in accord with governance protocol and prevailing public service directorship fees. All data related to Board compensation and expenses will be available for public review. 

4) Board members should be nominated by the Governor and approved by 37 senators. Unless a vacancy exists on the Board, the Governor shall  nominate no more than four Board Members during each four-year term.

5) No current member of the legislative or executive branches of state government should be a eligible to serve as a member of the Board thereby nullifying the claim that Board members "compel the conclusion that the legislative  members of PHEAA's board are acting as an arm of the General Assembly when  they engage in PHEAA activities." (Richard Willey, PHEAA, “Final Decision”, June 7, 2006)

6) The Executive Director of PHEAA shall not be a member of PHEAA's Board of Directors.

7) PHEAA’s current Board of Directors, together with senior management, should issue a statement acknowledging that PHEAA is not exempt from Pennsylvania's Right-to-Know Law.

8) PHEAA should reimburse the legal costs of the three news organizations that filed Right to Know requests, i.e., the Associated Press, the Patriot-News of Harrisburg and WTAE-TV in Pittsburgh.

9) PHEAA’s current Board of Directors, together with senior management, should immediately release all records requested by legitimate news organizations, including all names or other information necessary to a complete understanding of the nature and purpose of all financial transactions,  and release the outstanding  records requested by the above-named news agencies.

10) PHEAA’s Board should issue a statewide request for proposal  for bond lawyers and counsel not affiliated with senior management or the Board of Directors or "contractually affiliated" with any cabinet member of the executive branch or any member of the legislative branch of Pennsylvania's government.

11) PHEAA’s Board should issue request for proposals for a forensic audit to be conducted by one of the Nationally-recognized "Big Four" accounting firms. an entity not affiliated with senior management or the Board of Directors.

12) PHEAA’s Board should accept Richard Willey's resignation, with severance compensation contractually in effect and required as of his last compensation review date, and conduct a statewide search for a qualified Executive Director, not "contractually affiliated" with senior management or the Board of Directors or "contractually affiliated" with any cabinet member of the executive branch or any member of the legislative branch of Pennsylvania's government.

Eric J. Epstein, Coordinator
RockTheCapital.org is registered with the Pennsylvania Department of  State, and located at 4100 Hillsdale Road, Harrisburg, PA 17112.
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RockTheCapital.org (RTC) is a nonpartisan, voter education organization and a  Political Action Committee. RTC was formed in August, 2005,  after the Pennsylvania legislative, judicial and executive branches conspired to enact a compensation package in violation of a state  constitutional provision which bans seated lawmakers from granting themselves a pay raise.