A call for financial transparency from Pitt

The Petersen Events Center is a beautiful, modern facility. It’s a student hub, makes a… The Petersen Events Center is a beautiful, modern facility. It’s a student hub, makes a great picture for brochures and is a hell of a basketball arena.

Consequently, it cost a lot of money to build. That shouldn’t come as a surprise to anyone. As with most construction projects, too, final costs were far higher than initial estimates.

At first, the projected cost of the building was $35 million. The final figure was $119 million — more than triple the estimate. Taxpayers’ contributions wound up totaling $66 million, after Pitt said it would take no more than $13 million in public funds.

Building projects are known for running over budget and longer than expected. When that happens, it can be a public relations nightmare, but it is incumbent upon the entity spending the public’s money — Pitt, in this case — to be forthright about it. In terms of public relations, it is poor form to miss a chance to apply spin to information. And it is always poor form to conceal important information.

Neither Pitt nor the state was willing to admit to these increases, despite official documents, uncovered by reporters from the Post-Gazette, indicating both knew when construction began in June 2000 that the cost would be much higher than estimated.

The Pete is an investment in the university, the region and the state. It is useful for basketball recruiting, as well as for bringing big-name musical acts to perform in Oakland. It is a big expenditure for certain interests, with rewards. As such, those interests deserve to know where their money is going.

If more is needed for justifiable expenses, Pitt needs to say so, and to say why, and then to make the needed adjustments in funding. While there would have certainly been an outcry at Pitt grabbing for more money, it would have been aboveboard, and thus far more honorable than the current scenario.

In light of the cost more than tripling — which is unrealistic, even in terms of expected cost increases — it seems Pitt was not in touch with reality from the outset. If it was an honest mistake, however, Pitt should have proceeded as though it had nothing to fear, instead of hiding known financial problems.

It is embarrassing for Pitt students — living, breathing symbols of the institution — to be enjoying the products of a university with such a credibility problem.