State Treasurer Rob McCord has joined state Senator Jake Corman, R-Centre, in his suit against the National Collegiate Athletic Association to recover and redirect the first installment of penalties paid over Jerry Sandusky’s conviction of sex-abuse charges. The suit, filed in Commonwealth Court, cites a new state law that requires the penalty money to be deposited into an endowment fund in the Pennsylvania Treasury.
The NCAA fined Penn State $60 million and directed the money to be spent on child-abuse prevention. McCord said in a statement that he supports how the money is being spent but not who is dictating how it’s spent.
Both Corman and McCord contend that the state provides such a significant percentage of Penn State’s discretionary budget that it is impossible to claim the penalties are derived entirely from non-state-sourced funds.
A statement from McCord’s office said both he and Corman filed the suit in their official capacities. Corman is the chairman of the Senate Appropriations Committee and was the principal sponsor of the Institution of Higher Education Monetary Penalty Endowment Act, which required the NCAA to deposit the entire $60 million in penalties with the state treasurer. As the designated sole custodian of those funds under the act, McCord has a fiduciary duty to protect a state asset, and in this case, seek deposit of the $12 million payment into the fund. As treasurer, McCord is the custodian of all state funds, which total approximately $90 billion in public assets.