Perspective: Penn's lobbying effort

Penn is typically regarded as a major player in the academic arena, but the University, like most large research universities, also wields considerable force in the world of politics in the form of lobbying.

Penn conducts its lobbying efforts -- or trying to influence legislators to vote favorably for a particular institution -- on three levels: federal, state and city. The issues, the objectives and the benefits of lobbying vary with the level of government.

The Office of Government, Community and Public Affairs is responsible for Penn's lobbying efforts. As a reflection of the differences among the varying levels of lobbying, three offices exist underneath the OGCPA -- Federal Relations, Commonwealth Relations and City and Community Relations.

In Washington, Penn's interests -- most importantly, research interests -- are shared by many of the nation's academic institutions. In Harrisburg, financial appropriations dominate the scene. Meanwhile, here in Philadelphia, the University deals mainly with city codes, ordinances and initiatives.

Penn's federal lobbying is unique from that of state and city in that its goals are shared by many of the nation's universities.

"When it comes to Washington, Penn is not advocating specifically for Penn. Penn's agenda is shared with other major research universities," said Carol Scheman, vice president of the OGCPA and Penn's representative in Washington.

Because of these shared goals, Penn collaborates with 50 or 60 other universities, including all of the other Ivy League schools, the universities in the California system and Big Ten schools like Northwestern University and the University of Michigan. Representatives from all of those institutions work to persuade lawmakers to address their concerns.

The University also works in collaboration with groups such as the American Association of Medical Colleges and the National Association of Scholars.

"We care about student aid, tax policies that favor charitable giving, and research policies that allow for open inquiry in all fields," Scheman added.

Because the federal government provides need-based assistance to college students, Penn and other institutions aim to increase the amount allocated for federal student aid.

Institutions like Penn also lobby for tax policies that favor charitable giving, which encourage donations to the University. Donations, in turn, help pad Penn's overall endowment and budget.

Despite the importance of those interests, "Research funding is the largest issue [in Washington]," according to Scheman, and probably also the most directly profitable of Penn's federal efforts.

"Research funding involves 20 different things, from the National Institutes of Health to the National Science Foundation to the Department of Engineering," Scheman said. For example, Penn receives the second largest amount of NIH funding of any institution in the country.

In fact, a key aspect to Penn's lobbying efforts is urging Congress to increase research funding for the national Energy, Defense and Engineering departments. Universities like Penn conduct a great deal of federally-funded research for governmental departments such as these. More money for these departments' research budgets means more money for universities like Penn.

"This country is unique in the way we conduct research," Scheman said. "We conduct the largest amount of research at universities, training the next generation of researchers. The U.S. government is the largest patron of research."

The guidelines and rules that direct the work done by researchers also concern Penn. The University's lobbyists urge members of Congress to broaden "the regulations and rules that guide research" in order to increase the breadth of the school's research, Scheman said.

While lobbyists at both the federal and state levels may use similar tactics -- chiefly, petitioning legislators and leaders to address their concerns in a favorable manner -- the concerns at the state level vary from those in Washington.

Penn's successes in lobbying efforts are also much more easily measured financially on a more local scale.

In Harrisburg, Penn tries to maximize the financial appropriations it is awarded, which currently total over $40 million per year.

"That is a large amount for a private university," Commonwealth Relations Director Paul Cribbins said.

Penn has typically enjoyed a modest increase in funding from year to year, but this year's state budget calls for a 7 percent reduction in appropriations for the University.

"We had a 6.4 percent increase last year and a similar increase the previous year. Increasing the amount of state funding this year will be tough, as it will be for every school because of the Commonwealth's budget situation," Cribbins said.

"They are projecting a very large deficit for the current year. We will be engaged in lobbying efforts to encourage the state to restore as much as possible," he added.

The largest proportion of the state's appropriations goes toward Penn's School of Veterinary Medicine, the only veterinary school in the state. Well recognized for its significance to Pennsylvania's agricultural needs, the school's prominence within the state is the reason for its substantial financial benefits, and Veterinary School Dean Alan Kelly frequently travels to Harrisburg as its representative.

"The veterinary school is excellent in showcasing the school and working with public officials. [The school] makes a really good case," Cribbins commented, noting the school's success in influencing appropriations legislation.

Aside from the financial appropriations, Penn is also currently lobbying the state with regard to benefits created by the settlement with the tobacco industry and by medical malpractice suits.

"Maximizing the amount of money coming out of tobacco settlements for research is a major effort," Cribbins said.

In fact, this "major effort" has already been showing some success in terms of financial benefits for Penn's medical research programs.

In June, Penn's Health System received a sizable portion of the $11.3 billion given to Pennsylvania from settlements in national tobacco lawsuits.

The amount received from tobacco settlements "is up from 10 percent to 19 percent at Penn, meaning $9 to $11 million per year as long as tobacco companies remain in business," Cribbins said. "It is a lock grant for related research."

In addition to that money, between $4 and $5 million more will go to cover uninsured patients at Penn's hospitals.

Medical malpractice suits, currently an issue in national as well as state affairs, remains important to Penn's lobbyists because of the importance of the Hospital of the University of Pennsylvnia to the University's financial status.

"Liability is a major cost factor for hospitals and doctors in terms of lost positions and actual malpractice costs," Cribbins commented. "In Pennsylvania, and particularly Philadelphia, rates of malpractice suits are extremely high, 40 to 70 percent higher than that of surrounding states."

Penn has been working with many of the health care interests in the state, hoping to reduce both the frequency and the effects of medical malpractice suits.

While federal and state lobbyists address broader interests and financial issues that affect the University as a whole, the scope of city-level lobbying focuses mostly on how the codes and initiatives governing the City of Philadelphia affect Penn. Whereas much of the work of lobbyists at higher levels is coordinated with other organizations and groups, the interaction between lobbyists and public administrators at this level is focused solely on the University.

"We work on a wide range of issues, from... commerce to the City Council to how we can help with the mayor's Neighborhood Transformation Initiative," a program begun by Philadelphia Mayor John Street to remove sources of blight in the city, Scheman said. "We are currently working with [West Philadelphia] Councilwoman Blackwell on how we can help with the transformation initiative."

"In any municipality there are codes and we're working closely with the city to make sure we're following those rules," Scheman said.

Since any building or construction done by the University is subject to these rules, Penn has an interest in keeping these rules conducive to future plans for expansion.

When it comes to city lobbying, it is fairly clear how Philadelphia is affected. The University is the city's largest private employer, and both entities work together on a variety of programs.

Many Penn executives also demonstrate a high degree of personal involvement in city politics.

University President Judith Rodin has been dedicated to numerous mayoral initiatives, most notably as the chairwoman of Innovation Philadelphia -- a public/private partnership designed to establish the city as a world class leader in the knowledge-based economy.

Penn Vice President for Budget and Management Analysis Michael Masch was appointed to Street's newly-formed School Reform Commission, and both he and Vice President and Chief of Staff Pedro Ramos were active on the now-defunct public school board.

"We are seen as a model for the way to do lobbying," Scheman said. But the problem with analyzing the effectiveness with any lobbying strategy is the fact that pie charts do not usually reveal missed benefits.

The OGCPA likes to advertise what Penn gains through lobbying. Still, Scheman admits that identifying Penn's potential losses must also become part of the lobbying campaign.

An analysis of Penn's losses would make Scheman less worried that "lobbying is a loaded term," that in common parlance usually indicates an undesirable practice. As Penn's primary lobbyist, it is a misconception she would like to dispel.

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