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The University of Texas System
MottoDisciplina Praesidium Civitatis
(Latin for "Cultivated mind is the guardian genius of democracy")
TypeState university system
Established1876
Endowment$20.5 billion [1]
ChancellorFrancisco G. Cigarroa
Academic staff
17,158[2]
Undergraduates141,134[3]
Websiteutsystem.edu


Unviseristy of Texas admissions controversy grew out of the investigations of a member of the the University of Texas System Board of Regents. Wallace Hall was appointed to a six-year term in February 2011 by Governor Rick Perry.[4] Following his appointment as a regent in 2011, Hall began examining political favoritism and forgivable loan programs at the University of Texas at Austin. After Hall began reviewing UT Austin's responses to various open records requests, state legislators initiated an investigation into possibly impeaching him. The impeachment investigation has been criticized by Governor Rick Perry,[5] Hall was the first to publicly raise concerns about legislative influence on admissions at UT-Austin under President Powers' tenure.[6] Following up on these concerns, the UT system launched a limited probe to determine whether legislators application recommendations made straight to Powers were given special treatment.[6]

Lieutenant Governor candidate Senator Dan Patrick, The Dallas Observer, National Review and The Wall Street Journal criticised the Texas legislature's investigation of Hall, the last of which called it "Political Revenge in Texas",[7] with some calling the process an effort to criminalize policy differences. Anne Neal, President of the American Council of Trustees and Alumni characterized these sorts of investigations as "expensive witch hunts designed to discourage public servants from asking tough questions in pursuit of the public interest."[8]


University of Texas investigations

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After he was appointed in 2011, Hall began looking into what he believed to be administrative and management issues at the University of Texas system at Austin.[9] The investigations turned up three major findings:

  • Undisclosed and unauthorized forgivable loans programs at UT School of Law [10]
  • Improper methods of reporting donations to UT Austin's capital fundraising campaign [11]
  • Legislative influence over admissions processes [12]

Hall, as an individual citizen, filed four open records requests with the University of Texas at Austin after his inquiries via his role as a Regent were delayed.


Early in Hall's tenure on the board, the university revealed to regents problems with a large private endowment used to provide off-the-books six-figure "forgivable loans" to certain faculty members. This had not been reported to the board and was out of sight of the university's formal compensation system. Hall wanted to know how large the forgivable loans were and who had decided who received the "forgivable loans". [13]

In March 2013, the Board of Regents voted to re-open the forgivable loans investigation rejecting and abandoning a previously prepared report by then UT System General Counsel Barry Burgdorf.[14]

Legislative influence over admissions

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In a report, Chancellor Cigarroa found concluded, “A disproportionately high number of applicants were admitted notwithstanding the fact that most of the legislator letters did not contain any significant substantive information about the applicant.”[15] and, “in more than one-half of them, there is no evidence that the author of the letter even knows the student, much less knows him or her well.” Representative Dan Branch, who began the drumbeat for impeachment in February 2013, was also highlighted in the Watchdog article for his serial letter writing on behalf of applicants to the University of Texas: "All seven of the letters from Branch were written in the month after Straus took power. Since then, as the chairman of the Higher Education Committee, Branch has grown closer to Powers. He’s a frequent guest in Powers’ luxury suite at football games.[16] Powers has taken the university’s private jet to a dinner in Dallas he hosted for Branch, even bringing two of Branch’s children, who were then undergrads at UT. Branch’s son Spencer now works at the University of Texas Investment Management Company.” [17]

A report commissioned by the University of Texas concerning allegations of admissions favoritism was expected to be released in early April 2014. The report showed "applicants who had a lawmaker intervene on their behalf with top university officials were far more likely to gain admission than an applicant without those connections." [18]

The legislative committee pursuing the impeachment of Wallace Hall was also expected to release its report in early April. Citing unnamed "sources familiar with the matter," Watchdog.org reported that the committee's leaders intended to use their report to counter the potential impact of the admissions favoritism report.[19]

In October 2013, Pitts acknowledged that he routinely writes letters to Bill Powers, President of the University of Texas, on behalf of select student applications.[20] Specifically, he wrote a letter on behalf of his son after the University of Texas Law School had initially rejected his admittance. "The letter I wrote for my son was pretty much a form letter," Pitts said in an October meeting of the Transparency in State Agency Operations Committee. These letters were sent to both the law school dean and the university president.

Impeachment proceedings

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An effort was begun in June 2013 to impeach Hall from his position as regent.[21] Some legislators initially attempted to justify the impeachment on grounds that Hall did not disclose several lawsuits that he was involved in when he originally completed his Regent background check. Hall updated Governor Rick Perry's office in April 2013 with the full list.[22] No unelected official in Texas has ever been successfully impeached or removed from office. Governor of Texas Rick Perry's spokesperson said the investigations send a "chilling message" to gubernatorial appointees. The Select Committee on Transparency in State Agency Operations began a yearlong, $500,000+[23] investigation into Wallace Hall and never held a vote to impeach the Regent. The most the select committee could do would be to recommend to the full House that articles of impeachment be drafted. If that had happened, then the House would follow procedures regarding calling a special session specifically for the process of impeachment.

The committee hired lawyer Rusty Hardin to serve as legal counsel for the committee. State District Judge Kelly Case (presiding judge in the Adrian Peterson child abuse case) referred to Hardin as a "media whore".[24] In July 2013, University of Texas Chancellor Francisco G. Cigarroa and Regent Eugene Powell responded to the ongoing investigation and negative remarks against Hall from some elected officials and University of Texas staff. Cigarroa said Hall was not allowed to access anything that was not reviewed by University lawyers to ensure they met federal privacy standards. In a July 15, 2013 letter to state representative Jim Pitts, Powell wrote: "Regent Hall's efforts extend to bringing the U.T. System into a competitive position nationally; especially related to offering blended and online learning opportunities to U.T. students. I would point out Regent Hall's excellent service to the Board in terms of time and energy. I appreciate his Board service and his dedication and hard work designed to fulfill his fiduciary obligations."[25]

In a letter dated August 15, 2013, Hall responded to the committee via his lawyer. The letter expanded upon the reasons for Hall's investigation. According to the letter, Hall found that "allegations of political influence in the admissions process appear in some instances to be true."

"Regent Hall found correspondence on behalf of a state Representative inquiring about the admission of the Member’s adult son or daughter to a UT Austin graduate school. Although the dean had previously stated the applicant did not meet the school’s standards and would need to either retake the graduate admission exam or attend another graduate school first, upon information and belief, the son or daughter was in fact admitted without retaking the test or attending another school. Regent Hall found other correspondence in which a state Senator sought special consideration for an applicant who had been rejected, but was strongly supported by another Senator. In the communication, the Senator seeking special treatment reminded the UT Austin official of recent legislative action taken to benefit The University. Upon information and belief, the rejected applicant was subsequently admitted to UT Austin."

During a September 2013 panel conversation with state senator Kirk Watson, Hall defended his investigations and criticized the impeachment proceedings. "Impeachment is used to protect the public, not to punish an individual. Do you think I’m protecting the public, or do you think the politicians that are coming after me are protecting the public?"[26]

The Wall Street Journal opined against Hall's impeachment in a May 11, 2014 op-ed.[7] Meanwhile, University Chancellor Francisco Cigarroa asked University of Texas, Austin President Bill Powers to resign or face termination at the July 10, 2014 University of Texas Board of Regents meeting. Cigarroa attributed the request to a "breakdown of communication, collegiality, trust and a willingness to work together for the good of the university." Powers at first indicated he would not resign, saying it would "cast the university and our state in a highly unfavorable light." However, on July 9, 2014, Cigarroa released a statement that Powers nevertheless agreed to resign effective June 2015.[27] The Board meeting agenda indicated regents would discuss Powers in an executive session. Some legislators on the transparency committee sent a letter requesting that the Board of Regents delay any personnel decisions regarding Powers or other witnesses from the impeachment hearings. In a July 2014 op-ed, the Wall Street Journal commented that Powers' resignation would bring more attention and scrutiny to the political favoritism scandals at the University of Texas. The editorial board wrote: "The voters seem to understand, even if some legislators don't, that college admissions are supposed to be based on merit, not political connections." [28] Although the committee left open the possibility of revisiting impeachment, an August 11, 2014 vote passed 6-1 to recommend that Hall be 'censured' (sic), possibly bringing a close to the more than year-long process. In response to the censure vote, Governor of Texas Rick Perry issued a statement defending Hall's actions, saying the regent acted in the best interest of Texas "in the face of withering personal attacks."[29] Hall responded to the committee's recommendation by saying "Speaker Straus and his committee have abused the public's trust and money to cover up their improper interference in System operations, including to defend a university president who was repeatedly asked to leave.Intimidation of non-paid public servants by an "experimental" committee should not be tolerated by the public, the media, or other Texas officials. This is especially true when the effort is intended to interfere in the performance of duties that are required by law and the Texas Constitution".[30] There was never a call to take the censure recommendation to the floor of the House of Representatives. It is now effectively dead, having no legal effect.[31]


Subpoena

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At a meeting on November 12, 2013, the committee issued subpoenas for Dan Sharphorn, University of Texas Vice Chancellor and General Counsel; Francie Frederick, General Counsel to the University of Texas System Board of Regents; Barbara Holthaus, System Senior Attorney; and Hall, who was expected to testify at the December 10, 2013 meeting. However, only minutes after initially filing the subpoena for Hall, committee members suddenly recalled it. Carol Alvarado said the members acted too quickly without checking their schedule. The subpoena was issued for December 10, but no meeting was scheduled until December 18.[32]

With University of Texas Chancellor Francisco Cigarroa and University of Texas, Austin President Bill Powers already subpoenaed to appear at the December 18–19 meetings, Hall's lawyer Allan Van Fleet requested that the committee respond regarding whether it would also subpoena Hall. On December 5, 2013, Van Fleet sent a letter to the committee requesting that the co-chairs announce whether Hall would indeed be subpoenaed. Van Fleet's request asked for an answer by the end of the day. In response, committee attorney Rusty Hardin said "We're not going to adhere to his deadline. He doesn't get to pick the time and place." Van Fleet pointed out that providing two weeks' notice for testimony is the standard to allow individuals to prepare testimony. He added that the letter has "caused confusion about the committee's intentions."

Request to Testify

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On December 10, 2013, the committee sent a letter to Hall asking that he testify—but they did not issue a subpoena. The committee sent a one-page, two-paragraph letter that invited Hall to testify and provide a list of witnesses. On December 16, 2013, Hall's attorney Allan Van Fleet said Hall would not testify at the December 18 committee hearing. Van Fleet wrote: "Regent Hall has volunteered a number of times in the past to share his views with legislative Committees about the challenges and opportunities faced by the UT System. Though these offers have never been accepted, he remains interested in sharing his views, in collaborating with all policy makers on initiatives that will benefit the UT System, and in working with the committees to improve the transparency and accountability practices that should guide all UT System activities.[32]

Hall was invited to testify but was not given a subpoena, which is often perceived to provide some legal protection to the witness. Other individuals -- such as Chancellor Francisco Cigarroa and University of Texas Austin President Bill Powers -- had been given formal subpoenas. Legislators criticized Hall for not agreeing to testify, despite the differing set of circumstances given to Hall.[32]

Criminal Allegations

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A January 2014 review by the law firm Hilder & Associates concluded that there was "no credible evidence of a violation of [the state government code] that would warrant a referral for criminal prosecution." The report concluded that Hall had a legitimate reason for having the documents in question. "In light of the fundamental role attorneys play, it would lead to an absurd result were it criminal for an official to provide student records to his or her attorney in the face of litigation, or anticipated litigation, involving these records," Philip Hilder wrote in the report. Hilder submitted the report to the legislative committee. The Board of Regents hired the firm to review whether Hall may have violated any federal privacy laws in his handling of student information. November 2013 testimony prompted committee-member Trey Fischer to request the inquiry. Committee member Dan Flynn said he was not surprised by the findings and was pleased the university counsel reached a conclusion.

Release of Email Documents

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Over 2,000 pages of email documents were released by the University of Texas at Austin to news outlets in late March 2014. Some of these documents detailed inquiries by Wallace Hall into President Bill Powers' travel practices.[33] Some of Powers' travels were paid for in part or in full by donors. In January 2014, Hall challenged the "institutional purpose" of some of these travels in a message to Vice Chancellor for Academic Affairs Pedro Reyes.

In addition, the released correspondence suggests dissatisfaction on the part of the Board of Regents with the administration's handling of the admissions favoritism investigation. Regents Hall and Gene Powell said they were skeptical that Powers would cooperate with the Board's inquiry into the matter. "I have no confidence that we will get full cooperation from Bill Powers now or in the future as his assurances are unsupported by the facts," Hall wrote in a message to Chancellor Francisco Cigarroa. Powell echoed this sentiment. [34].

Committee Report

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On April 7, 2014, the San Antonio Express-News and Houston Chronicle viewed an advance copy of Hardin's 176-page report. The newspapers reported that the document was previously made available to committee members on April 4, 2014. The report alleges that Hall broke state and federal law. The report refers to Hall's "burdensome" requests for records as one of the critiques laid out against the regent.

Hall, in a September 4, 2014 Texas Tribune interview, criticized Joe Straus' handling of the report. Hall related that "when the Hardin report was coming out and being sent to the committee, Speaker Straus took the time on a Friday afternoon to go to the governor’s office, to tell the governor’s staff, while the governor was out of the country, that there were seven proposed impeachable offenses, three of them criminal, one of them potentially a felony. An hour later, a senior member of his staff called the governor’s staff back and suggested that if the governor would ask me to resign, then we could probably make this stuff go away. I think that’s wrong... I think that’s gross interference"[35]

Post-Report Meetings

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On April 24, 2014, the committee met privately for three hours discussing Hardin's report. Legislators would not disclose the conversations held behind closed doors. A committee hearing was held on May 12, 2014 where legislators voted 7-1 that there were grounds for impeachment. Committee co-chair Dan Flynn (R) called the vote a "historical time" (sic). Charles Perry (R) was the one representative who voted against grounds for impeachment. In response to the vote, Hall released a statement, in which he defended his actions and accused the transparency committee of interfering with investigations of the University. "My efforts as a regent are to serve the interests of our great educational institutions, the students, faculty, and staff who make them great, and the taxpayers who fund them, not to appease a privileged class who abuse them," Hall said in the statement.[36]

Reaction

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Anne Neal, president of the American Council of Trustees and Alumni (ACTA), said the investigation of Hall was "simply off the rails." Throughout much of the investigation, legislators have maintained that Hall was on a "witch hunt" for President Bill Powers. Neal's statement took the opposite approach, accusing the legislature of engaging in an "expensive witch hunts designed to discourage public servants from asking tough questions in pursuit of the public interest." According to its website, the ACTA is "an independent, non-profit organization committed to academic freedom, excellence, and accountability at America's colleges and universities."

Richard Legon, president of the Association of Governing Boards of Universities and Colleges, criticized the impeachment process in a November interview with the Austin American Statesman. He called the impeachment process the "nuclear option" and said it could send a chilling signal to other members of higher education boards. Legon suggested that the board should have first been given the opportunity to address Hall's requests. "It’s fine for a board member to seek information through the appropriate path", he said.

References

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  1. ^ As of February 14, 2014. "U.S. and Canadian Institutions Listed by Fiscal Year 2013 Endowment Market Value and Percentage Change in Endowment Market Value from FY 2012 to FY 2013" (PDF). 2013 NACUBO-Commonfund Study of Endowments. National Association of College and University Business Officers. Retrieved April 1, 2014.
  2. ^ a b 2006 figure
  3. ^ 2005 figure
  4. ^ ""Perry Appoints New Regents", Dallas News".
  5. ^ "A Conversation With UT System Regent Wallace Hall, Texas Tribune". http://www.texastribune.org/. {{cite web}}: External link in |website= (help)
  6. ^ a b "UT Regents Push Back". http://www.expressnews.com. {{cite news}}: External link in |publisher= (help)
  7. ^ a b "Political Revenge in Texas, Wall St. J. (May 11, 2014),".
  8. ^ "Statement from ACTA President Anne Neal on UT Trustee Wallace Hall".
  9. ^ "UT Investigation".
  10. ^ "Foundation's Forgivable Loans Draw Fire".
  11. ^ "Trustee Accused of Crime for Rejecting Dodgy Accounting".
  12. ^ "Wallace Hall Was Right".
  13. ^ Dallas Observer "UT Regent Davis Was Right". {{cite news}}: Check |url= value (help)
  14. ^ "Forgivable loan investigation".
  15. ^ "University of Texas uncovers admissions corruption, halts investigation".
  16. ^ "UT outspends all lobbyists combined on football giveaways".
  17. ^ "UT admissions: Straus, Branch, Pitts pulled strings".
  18. ^ Watchdog.org "UT Favoritism". {{cite news}}: Check |url= value (help)
  19. ^ Watchdog.org "UT Favoritism". {{cite news}}: Check |url= value (help)
  20. ^ "Pitts admission".
  21. ^ http://blogs.dallasobserver.com/unfairpark/2014/09/ut_system_wallace_hall_impeachment.php Dallas Observer
  22. ^ "Chilling".
  23. ^ Lauren, McGaughy. "Wallace Hall impeachment probe cost $500K". http://blog.chron.com/. {{cite web}}: External link in |website= (help)
  24. ^ "New York post news".
  25. ^ "Letter to Pitts" (PDF).
  26. ^ "Panel discussion".
  27. ^ Reeve, Hamilton. "Powers Will Give Up UT-Austin Presidency in June".
  28. ^ "Texas Admissions Brawl". http://wsj.com/. {{cite web}}: External link in |website= (help)
  29. ^ Lauren, McGaughy. "Officials respond to UT Regent Wallace Hall censure".
  30. ^ "Officials respond to UT Regent Wallace Hall censure".
  31. ^ "Texas House Rules" (PDF). http://www.house.state.tx.us/. {{cite web}}: External link in |website= (help)
  32. ^ a b c "Rebuke letter" (PDF).
  33. ^ "Travel".
  34. ^ Barer, David. "Disputed House testimony".
  35. ^ "A Conversation With UT System Regent Wallace Hall". The Texas Tribune.
  36. ^ "The Hall of Government".
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Category:Flagship universities in the United States Category:University of Texas System Category:Political scandals