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Penn State says scandal expenses reach $3.2 million

Penn State University said it has paid $3.2 million for legal fees, consultants and public relations firms to address the scandal that exploded with former assistant football coach Jerry Sandusky’s Nov. 5 arrest on child sex abuse charges.

The total released late Monday by the university includes costs through December. It was provided as Penn State launched a new website – openness.psu.edu – to demonstrate increased commitment to public disclosure in the scandal’s aftermath.

The site does not reflect all the costs that Penn State faces from the Sandusky matter. For instance, the school said it would not provide the settlement agreement with former Penn State president Graham Spanier, citing confidentiality language. Nor does the site include the settlement agreement with late legendary football coach Joe Paterno.

Spanier resigned and Paterno was fired as Penn State faced withering criticism for failure to report to law enforcement a 2002 allegation that Sandusky assaulted a boy in a campus shower.

The university said it would add information as it becomes available.

The university did provide, among other documents, the employment contract with Penn State’s new head football coach, Bill O’Brien, who makes $2.3 million a year; and the contract with Penn State president Rodney Erickson, whose base salary is $515,000 yearly.

It also provided links to other documents including audited financial statements.

In a rarity for a public university, Penn State enjoys an exemption to nearly all reporting requirements under Pennsylvania’s Right to Know Law, although legislation to change that is pending in both the state House and Senate.

The school said it expects insurance policies to reimburse some of the $3,196,517 it has spent for legal, public relations and consulting costs.

It put its internal investigation and crisis communications costs at $2,468,137 and university legal services and defense payments at $467,940.

Penn State has said it will not use tuition income, taxpayer dollars or donor money to pay costs related to the scandal. Instead, general liability and directors and officers insurance policies it holds are expected to defend against claims.