Med school a frequent donor to politicians (used foundation grants fraudulently)

The (New Jersey) medical school and its affiliated hospitals donated at least $155,000 to state politicians over the last decade - a highly unusual practice among universities in New Jersey and beyond.

The University of Medicine and Dentistry of New Jersey, which gets $200 million, or about 13 percent of its budget, from the state, gave to candidates and campaign committees from both parties. The contributions ran the gamut from $1,600 to Democrat Richard J. Codey before he became acting governor, to $24,750 to a campaign committee controlled by former Senate President and then-acting Gov. Donald T. DiFrancesco, a Republican.

The university contends the contributions didn't involve public funds but private donations to UMDNJ from two foundations - the Fannie E. Rippel Foundation, based in Somerset County, and the Ford Foundation in New York. In a written statement, the university said the grants were intended, in part, "to ensure the visibility of the university president and/or his designees."

But both foundations say their grants to UMDNJ should not have been used for that purpose. The Rippel Foundation said the $1.01 million it gave over 30 years was intended for specific equipment and construction of a health-care center in Newark. The Ford Foundation said its $100,000 grant in 1990 was for the creation of training material for Newark preschool teachers to help them identify and work with gifted children.

"How bizarre," said Thea Lurie, the deputy director of communications for the Ford Foundation, when told about UMDNJ's claims. She added, "We give grants for very specific purposes. We do not give grants for people to use for political contributions."

UMDNJ has come under scrutiny for its spending practices over the past several months, including its plans to hold a lavish inauguration for its president, John J. Petillo. The State Commission of Investigation is now probing spending practices - including the awarding of contracts without competitive bidding - at UMDNJ and several other state universities.

UMDNJ officials declined to be interviewed for this article, but spokesman Susan Preston did provide some written answers to questions that were submitted. She would not, however, explain the reason for the political contributions.

The legality of campaign contributions by state schools is unclear because the practice itself is so unusual. Private universities are generally barred from any political activity, including donations, by federal tax law for tax-exempt organizations.

As for public universities, the New Jersey Constitution says the state cannot appropriate money "for the use of any society, association or corporation whatever." The state Supreme Court, in a 1964 case, said the provision reflects a "fundamental doctrine of government, i.e., that public money should be raised and used only for public purposes."

UMDNJ says its political contributions didn't violate that principle because they didn't involve public money.

State election law also forbids campaign contributions from entities that have the power to condemn land. State educational institutions have that power.

The state Attorney General's Office would not comment on UMDNJ's donations because one of its responsibilities is to provide legal assistance to state schools, said Lee Moore, a spokesman.

He added, "We have not received any complaints or requests for investigation into this area."

In those rare instances when a state school wants to augment its political influence through campaign contributions, it generally funnels private money into a separate political action committee, said Sheldon Steinbach, vice president and general counsel for the American Council on Education, which represents 1,800 universities and colleges. Some universities also bundle political donations from alumni, trustees and staff, sending an implicit message that the money is meant to further the school's interests, he said.

UMDNJ's donations aren't attributed to a political action committee. Although the university said all of its donations came from a privately funded "community events account," only three of its 88 donations since 1995 are attributed to that source, according to records from the state's Election Law Enforcement Commission.

Most of the donations are ascribed simply to the "University of Medicine and Dentistry of New Jersey" or "UMDNJ." Two donations are listed as coming from the "general operating" or "general operations" account, and three others are attributed to the "UMDNJ Government Relations Office," the "UMDNJ Office of Government and Public Affairs" or the "UMDNJ director of government relations."

"UMDMJ when asked about the discrepancies, continued to maintain that all the money - regardless of what recipients reported to the election commission - came from the community events fund.

Many of UMDNJ's gifts were over $1,000, with one donation of $7,500 to the Senate President's Committee, then controlled by DiFrancesco. The school gave repeatedly to some politicians, including Robert E. Littell, R-Sussex ($4,000 over five years) and Assemblyman Paul DiGaetano, R-Nutley ($3,000 over two years).

Codey, for his part, will not accept any future donations from UMDNJ, said his spokesman, Kelley Heck. When asked why, she said simply, "He doesn't think it's right for him to accept them anymore."

State politicians have received only $2,500 from other state schools - Ramapo College, Kean University and Thomas Edison State College - over the past decade, ELEC records show.

Most state universities nationwide refrain from giving money to politicians, said Steinbach, of the American Council on Education.

"People in our industry are scrupulously cautious when they move into the political arena, and would much prefer not to participate actively," he said.

Rutgers University is supposed to be "free of partisanship" under state law. It has banned institutional contributions to politicians since 1971.

UMDNJ, in contrast, is closely integrated with the state's political structure. Its Newark campus, the largest of its four, was created in large part to restore confidence in riot-ravaged Newark. Three and a half decades later, its $1.6 billion budget is a treasure trove of public jobs and contracts.

Unlike most medical school presidents, Petillo is not a doctor. But he is a friend |to many of the state's leading politicians; at last month's inaugural, Codey said there "was no better person to entrust at the helm."

One of the school's more vocal critics in recent weeks, Assemblywoman Loretta Weinberg, D-Teaneck, said she might push legislation to ban political contributions by any public entity. Despite UMDNJ's insistence that the money came from private sources, |"I think it's too hard to discern that."

UMDNJ might particularly resent Weinberg's criticism. In 2002, it gave her a $500 check.

"I probably didn't even look at it," she said. "I'm assuming that we thought it came from the appropriate account. ... It probably wouldn't have occurred to me, but it should have."

A sampling of contributions by the University of Medicine and Dentistry since 1995:

Source: Calculations based on data from New Jersey Election Law Enforcement Commission

The university contends the contributions didn't involve public funds but private donations to UMDNJ from two foundations - the Fannie E. Rippel Foundation, based in Somerset County, and the Ford Foundation in New York. ......But both foundations say their grants to UMDNJ should not have been used for that purpose. ......"How bizarre," said Thea Lurie, the deputy director of communications for the Ford Foundation, when told about UMDNJ's claims. She added, "We give grants for very specific purposes. We do not give grants for people to use for political contributions."

If UMDNJ filed applications for foundation grants under false pretenses, and used monies earmarked for other---possibly illegal---purposes, that would open the university to possible fraud charges.

Shockeroo. LOL.

Even for that corrupt state, this is a new low.......admitting to the misuse of grant funds.....they obviously think they'll get away scot-free.

Thanks for posting this.

This goes beyond foundations and gets into public institutions/organizations using public $'s to buy politicians.

For once I agree with a democrat, this one:

"One of the school's more vocal critics in recent weeks, Assemblywoman Loretta Weinberg, D-Teaneck, said she might push legislation to ban political contributions by any public entity. Despite UMDNJ's insistence that the money came from private sources, |"I think it's too hard to discern that."

UMDNJ might particularly resent Weinberg's criticism. In 2002, it gave her a $500 check.

"I probably didn't even look at it," she said. "I'm assuming that we thought it came from the appropriate account. ... It probably wouldn't have occurred to me, but it should have."

Besides banning non profits from contributing to politicians, her concept, "to ban political contributions by any public entity" is an excellent law for all of the states and at a national level.

Thanks for posting this. I mailed the original article to my family in New Jersey.

You know, this stuff doesn't always show up in the local papers, for some reason...

It's Ford Foundation and they support anything leftist. They may be crowing for public consumption but it is hard to credit that they were against this use. That is who they are.

This goes beyond foundations and gets into public institutions/organizations using public $'s to buy politicians.

True Gramps, but it is another avenue into forcing foundations to open their books.

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