A WATCHDOG PUBLICATION OF LNP MEDIA GROUP, INC. | TUESDAY, SEPTEMBER 26, 2017 | $4.

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No one has answers about the more Tom Corbett says he’s felt a “little bit Lou Barletta is often portrayed as Don-
than $3,000 in mystery expenses at out of my normal comfort zone” as ald Trump’s ‘political godfather.’ Will
the Lieutenant Governor’s mansion. governor and would have done one that help or hurt in his bid to unseat
PAGE 4 thing a little differently. PAGE 10 U.S. Sen. Bob Casey in 2018? PAGE 12
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Postmaster: Please deliver SEPTEMBER 26, 2017
Met volor mor
Unknown and
the esrcit, qui
th Unknowns a
ulpart entlisto. The state’s online transparency portal is less than
comprehensive. So what’s the point of keeping it alive?
P
ennsylvania’s student-
aid agency hires Penn
Waste to pick up gar-
bage and recyclable
items. But it wouldn’t say how
much it pays the York-based
trash hauler, at least not on the
state-run, taxpayer-funded
website designed to bring full
transparency to government
spending.
That same agency, the Pennsylvania
Higher Education Assistance Agency,
also didn’t disclose how much it pays
for elevator inspections through the
Department of Treasury’s e-contracts
portal. The cost was redacted online.
The same went for the bills for other
routine services paid for by PHEAA, in-
cluding window-washing, tree-trimming
and the provision of paper towels.
Redacted.
Redacted.
And redacted again.
Pennsylvania law requires state
agencies to make government contracts
$5,000 or more available for public in-
spection on the Internet. But the state’s
multibillion dollar student loan-servic-
ing agency redacted the cost of dozens of
6 T H E C A U C U S Tuesday, September 26, 2017
COVER STORY
» » PAULA KNUDSEN + BRAD BUMSTED
contracts and billings totaling millions
of dollars — until The Caucus started
asking why.
The Caucus’ findings raise questions
about how comprehensive the state’s
transparency portal, created and main-
tained at taxpayer expense, really is.
With PHEAA alone, The Caucus
identified scores of 2017 contracts
whose amounts had been redacted, as
well as other redacted contracts through
the past decade.
The majority of contracts reviewed
by The Caucus blacked out contract
costs or prices. The agency started
unmasking some of the records late last
week after the newspaper raised ques-
tions about the practice.
An agency review of 2016 contracts
is in the process of being changed, and a
spokesman said workers were “not wast-
ing any time reviewing and resubmitting
those documents as appropriate.”
While the number of redacted con-
tracts represents a small portion of the
agency’s contracts, it remains unclear
how many of PHEAA’s contracts contain
such redactions and how many other
state agencies are also blocking taxpay-
ers from reviewing such information
online.
Agencies that would typically moni-
tor compliance with the law said they
haven’t done audits.
In other words, they don’t know what
they don’t know.
What is clear, however, is that the
financial information blacked out by
PHEAA on contract after contract
should be available for public inspection
online.
“That’s all public,” said Melissa Me-
lewsky, media law counsel for the Penn-
sylvania NewsMedia Association. “I’m
not sure why they are redacting that. ...
The Right to Know Law is designed to
provide maximum access to financial
amounts in records.”
PHEAA officials said the agency is
conducting a review of all contracts
as a result of The Caucus’ inquiry, but
stopped short of saying all basic contract
amounts would be restored.
The redacted documents had been
signed – approved – by a deputy attor-
ney general in 2017. But Joe Grace, a
spokesman for Attorney General Josh
Shapiro, said the “redactions were not
present in the contracts when we ap-
proved them.”
‘NO EXPLANATION IS SUFFICIENT’
U
nder a 2008 revision of the
Right to Know Law, which cre-
ated a presumption of open-
ness for government records, executive
branch, legislative, and judicial agencies
must file copies of contracts with the
state Treasurer’s office.
The requirement applies to contracts
for $5,000 or more, and the contracts
are to be filed with the Treasury within
10 days of the contract’s execution. But
there’s no penalty for failing to file or
filing incomplete information.
Taxpayers spent hundreds of thou-
sands of dollars on developing the state
website and spend $10,000 a year to
maintain it.
Yet PHEAA in many cases has not
been complying with the most basic ele-
ment of the Right to Know Law, experts
say: how much state and local govern-
ment agencies are paying for services.
“I’m kind of astounded by this clumsy
move given their track record of misus-
ing public funds,” said Eric Epstein, a
government reformer, referring to a 2007
PHEAA scandal related to paying big bo-
nuses and junkets at lavish resorts.
“It is not acceptable to scrub public
documents the public is entitled to view.
The bottom line is that no explanation is
sufficient. This is an agency that should
have been more sensitive to the appear-
ances and playing by the rules. This is a
major setback,” said Epstein, who has
tried to work with the PHEAA board on
transparency issues.
The chairman of the PHEAA board,
Republican Rep. Michael Peifer of Pike
Etfda
danp
starg
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pxytt
County, said the agency is com-
mitted to “openness and trans-
parency.”
Keith New, the agency’s
spokesman, said The Caucus’
inquiry about the redacted
contracts was the first time the
agency had ever heard about the
issue. PHEAA has now launched
a review of contracts posted on
the Treasury website, with a
team of employees examining
past redactions and determining
if information was inappropri-
ately withheld.
Despite its commitment to
review past contracts, PHEAA
maintains it did have the right
to withhold some information
from the public.
“During the span of the past
10 years we would have executed
potentially thousands of con-
tracts,” New said. “The (public
records law) permits redactions
for a myriad of reasons — includ-
ing building security, infrastruc-
ture, computer hardware and
software, and confidential and
proprietary information.”
Nonetheless, he said,
“PHEAA is reviewing our inter-
nal processes to ensure that we
remain compliant with both the
letter and spirit of the RTKL.”
While the Right to Know Law
does provide for exemptions,
they do not cover the deletion
of basic financial information,
Melewsky said.
“The ‘How much I’m paying
for this’” has to be made public,
Melewsky said.
Epstein said New’s state-
ment to The Caucus “is indica-
tive of systemic problems with
PHEAA’s internal controls.”
Those problems, he said,
include “lack of clear cut proto-
cols, absence of oversight ... and
allowing vendors to determine
what is confidential and propri-
etary information.”
LACK OF SCRUTINY
P
ennsylvania’s Office of
Open Records oversees
the open records law. Its
executive director, Erik Arne-
son, said he is not aware of any
audit or review to determine
whether agencies are following
the section of the law requiring
state agencies to post contracts
in excess of $5,000.
Barry Ciccocioppo, the com-
munications director in the Audi-
tor General’s Office, also said he
was not aware of any audits on the
law’s requirement that agencies
file contracts with Treasury.
Heidi Havens, the press
secretary at the Treasurer’s
Office, said: “Treasury is simply
following Act 3 of 2008 of the
Commonwealth RTK Law that
mandated Treasury create a
web-based library that would be
available to the general public.”
In other words, Treasury acts
as a depository for the docu-
ments.
Havens said the total cost to
est
COVER STORY
Response
Reporters for The Caucus sought comments from all 19 vot-
ing members of the Pennsylvania Higher Education Assistance
Agency board. Only four board members returned their phone
for
calls. Here’s a look at who picked up the phone to answer our
questions and who didn’t.
CALLED OR EMAILED BACK
tyl
Rep. Michael Peifer, Rep. James Roebuck,
chairman, R-Pike D-Philadelphia
County
go
Rep. David Hicker- Sen. John Eichel-
nell, R-Lancaster berger, R-Altoona
COULDN’T BE REACHED
Former Rep. Roy
Reinard, R-Bucks
Timothy Thyreen,
chancellor Waynes-
burg University
DIDN’T RESPOND
ot
develop and launch the contracts
e-library website was about
$300,000 and Treasury was
Sen. Wayne Fon- Sen. Ryan Aument, Sen. John Blake, D- provided an additional $100,000
tana, D-Pittsburgh R-Lancaster County Lackawanna County for the launch. The e-library site
is maintained by Treasury staff,
Havens said, and costs less than
$10,000 annually to maintain.
In March, the House directed
the Legislative Budget and
Finance Committee to conduct
a comprehensive review of the
fiscal impact on commonwealth
Rep. Paul Costa, Sen. Sheryl Delozi- Sen. Arthur Hay-
D-Pittsburgh er, R-Camp Hill wood, D-Philadelphia agencies and local governmental
agencies for implementation
of the Right to Know Law. The
committee was asked to make
recommendations.
Patricia Berger, the senior
counsel and project manager
of the committee, is directing
the Right to Know report and is
Rep. Bernie O’Neill, Rep. Matthew Bradford, Rep. Mike Carroll, aiming to complete it by the end
R-Bucks County D-Montgomery County D-Pittston of the year. She said the contract-
ing website is not the focus of the
report, but may be included as the
agency continues its research.
ABOUT THOSE
REDACTIONS
T
Sen. Mario Scavello, Sen. Robert Tomlin- he Caucus review of
D-Monroe County son, R-Bucks PHEAA contracts online
found dozens whose
basic price information had
been redacted. Those contracts
were for software programs,
consultants, auditing firms, and
services such as garage cleaning,
window washing, and the provi-
Banking Secretary sion of paper towels.
Robin Wiessman Continued, page 8
Tuesday, September 26, 2017 THE CAUCUS 7
 COVER STORTY + CAPITOL EVENTS

PHEAA’s redacted contracts

Continued from page 7
Havens, the Treasury press secre-
tary, said contracts contained within
the Treasury’s online system are
posted by the agency that executed
the contract. So in this case PHEAA
handled the publication of its own
contracts.
“Any redactions made were done
by that agency,” she said.
New said his theory is that a
now-retired PHEAA employee may
have taken an overly conservative
approach in blacking out financial
prices. Asked who was supervising
that employee, New said the super-
visor was no longer with the agency.
He said he had determined that
there were no directives from man-
agers to delete prices of contracts.
SURPRISE AMONG
LEGISLATORS
The Caucus accessed PHEAA’s
contract with Penn Waste on the
Treasury’s website on Aug. 31. The
A “master agreement for consulting services” with Canadian company Juniper Innova- June 2017 contract, for waste and
tions Inc. The company was hired to “fulfill the role of a Developer on web development recycling removal at PHEAA’s Me-
projects” as well as other tasks. The hourly billing rate of a contractor to start in July 2017 chanicsburg location, was redacted
was blacked out. for monthly price and total price.
A June 2017 amendment to a financial audit agreement with Ernst & Young LLP. The New provided The Caucus with
audit fees were redacted. an unredacted copy of the Penn
PricewaterhouseCoopers Advisory Services’ contract for a project to start in June 2017. Waste contract, but the redacted
The projected cost breakdown for each stage of the project was redacted. contract remained on the Treasury
July 2017 purchase agreement with ATAB LLC d/b/a Dominion Elevator Inspection Ser- website through Sept. 15. By Sept.
vices, a York County company. The total price for semiannual routine inspections, three-year 20, the full amount of the contract
safety tests and five-year load tests was obscured by a large black box. was available on the Treasury
An April 2017 contract with Transworld Systems Inc., a California company, for debt collection website.
services. The rate of commission was redacted. “PHEAA will pay a commission rate of [redacted] The redacted contract was
on direct cash payments collected by Contractor from defaulted student loan borrowers, co- news to Wagner. He says his com-
signers, or employers via Administrative Wage Garnishment,” the contract stated. pany bids on contracts, which are
A May 2017 agreement with CleanTeam Building Services Inc., a Delaware corporation awarded to the lowest bidder. He
with a Cumberland County location, for “GP EnMotion brown roll towels.” The price of the said it sounded as if “an incompe-
paper towels was blacked out. tent employee” was responsible for
An agreement for window cleaning by Performances Services Inc., a Harrisburg company. taking out the contract’s cost.
The price was obscured in a March 2017 purchase agreement. Unlike PHEAA, the amount of

S
Penn Waste’s contracts with the Har-

The 2007 PHEAA scandal

tate lawmakers contacted
about the redactions
expressed surprise, and
a government watchdog suggested
PHEAA be audited.
Republican Sen. John Eichel-
berger of Altoona, a PHEAA board
member, said he wasn’t aware the
agency was redacting financial
information.
“I don’t understand why any-
one would have anything redacted
that should be public information,”
Eichelberger said. He said he would
talk to other board members and staff
to find out how it happened and “to
make sure it doesn’t happen again.”
Sen. Scott Wagner, R-York, a
candidate for governor, owns Penn
Waste Inc., a trash and recycling
company that has contracts with
state agencies and municipalities.
risburg Area Community College,
Department of General Services and
the Liquor Control Board were all
Records released in 2007 showed members of the Pennsylvania Higher Education As- available on the Treasury website.
sistance Agency board spent $768,000 on trips to posh resorts from 2000 to 2005 where Despite PHEAA’s pledge to re-
they got facials, culinary classes, falconry lessons and $25 cigars, as first reported by the view contracts for compliance with
Patriot-News. the Right to Know Law, activist
An audit by then-Auditor General Jack Wagner released in 2008 showed board mem- Epstein is skeptical.
bers dined at an “ultra-high end” steak house in Arizona, at a cost of $265 per person, “The only way to restore
spent $26,116 for Penn State “rally towels” and $10,000 worth of iPod Nanos for an Internet confidence in PHEAA’s internal
contest, $66,640 on Hershey’s candy packages for 2,380 clients, and $11,500 on screwdriver controls is for the auditor general
sets for giveaway items at conferences. to conduct an independent foren-
Disclosures about state bonuses further irked the public. They totaled $6.4 million over a sic audit,” he said. “When it takes
three-year period, and $3.9 million went to executives. ten years and an outside entity to
At least a dozen PHEAA executives earned base salaries and bonuses that exceeded Gov. identify internal irregularities, rest
Ed Rendell’s $164,500 salary, Wagner stated. assured more parts of the system
Wagner’s audit found that “PHEAA was governed and managed within a culture that are corroded or deficient.”
sometimes allowed self-reward to supersede fiscal prudence. In those instances, PHEAA The Caucus contacted all 19 vot-
failed its mission by not using all available resources to benefit Pennsylvania students.” ing members of the PHEAA board
That culture has changed dramatically, said PHEAA Chairman Mike Peifer, a Republican for comment. Only four board mem-
lawmaker from Pike County. “There’s a different culture here now,” Peifer told The Caucus. bers returned phone calls to discuss
“Quite frankly we want openness and we want transparency.” the issue.

THE WEEK AHEAD

9 A . M . , S E P T. 2 6 1 2 P. M . , S E P T. 3 0 1 2 P. M . , O C T. 2

Breathe Free PA Fundraiser for Stomp Out Bullying

CAPITOL ROTUNDA
Members of the Breathe Free Pennsylvania Coali-
tion hold a news conference to show support for
strengthening the clean indoor air law.
DACA students CAPITOL ROTUNDA
A news conference is held to discuss Blue Shirt Day
FRONT CAPITOL STEPS
and the World Day of Bullying Prevention.
Supporters of the Deferred Action for Childhood Arrivals
program will sell donated food to raise money for DACA
students who need financial aid in order to renew.

9 A . M . , S E P T. 2 6 6 P. M . , S E P T. 3 0 1 0 A . M . , O C T. 3

Recovery Same Night Safe Harbor

Advocacy Day
CAPITOL ROTUNDA AND EAST WING
A display aims to raise awareness of substance-
use disorders, celebrate individuals in long-term
recovery, and acknowledge the work of preven-
tion, treatment and recovery support services.
Addiction Vigil
FRONT CAPITOL STEPS
Accessible Recovery Services Inc. hosts speakers
and guests to light candles for loved ones who have
died because of their addictions. Similar events are
being held in Erie, Philadelphia and Pittsburgh.
CAPITOL ROTUNDA
A news conference is held in support of legisla-
tion that aims to provide special relief to sexually
exploited children by establishing the Safe Harbor
for Sexually Exploited Children Fund and imposing
penalties on human traffickers.

1 2 : 3 0 P. M . , S E P T. 2 6 11 A.M., OCT 1 1 0 A . M . , O C T. 3

STEM in PA Ken Krawchuk for Pink fountain

CAPITOL ROTUNDA
The departments of Education and Labor & In-
dustry join Pennsylvania’s STEM ecosystem for a
rally in celebration of STEM education and creat-
ing pathways from education to the workforce.
governor FOUNTAIN PLAZA
A news conference is held to kick off Breast Cancer
FRONT CAPITOL STEPS
Awareness Month by turning the Capitol fountain
Libertarian Ken Krawchuk holds a news conference pink for the month of October.
to talk about his intention to run for governor in
2018. Krawchuk ran in 1998, 2002 and 2014.

8 T H E C A U C U S Tuesday, September 26, 2017