COMMONWEALTH of PENNSYLVANIA HOUSE of REPRESENTATIVES COMMITTEE on APPROPRIATIONS N Re: Budget Request 1984-1985 University of Pennsylvania * * *
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COMMONWEALTH OF PENNSYLVANIA HOUSE OF REPRESENTATIVES COMMITTEE ON APPROPRIATIONS n re: Budget Request 1984-1985 University of Pennsylvania * * * Verbatim report of hearing held in Majority Caucus Room Harrisburg, Pennsylvania Tuesday February 28, 1984 11:50 A.M. ON. MAX PIFVSKY, CHAIRMAN on. Kurt Zwikl, Vice Chairman on. Joseph M. Hoeffel, III, Secretary Dn. H. William DeWeese, Chairman Subcommittee on Capital Budget on. James M. Mclntyre, Chairman Subcommittee Health and Welfare on. Ralph Pratt, Chairman Subcommittee on Education MEMBERS OF COMMITTEE ON APPROPRIATIONS on. Mary Ann Arty Hon. Joseph C. Manmiller on. Gibson Armstrong Hon. Richard A. McClatchy on. Thomas R. Caltagirone Hon. Gerald F. McMonagle on. Italo S. Cappabianca Hon. George Miscevich on. Brian D. Clark Hon. Nicholas B. Moehlmann on. Roy W. Cornell Hon. Howard F. Mowery, Jr. on. Ronald R. Cowell Hon. Frank Pistella on. Alphonso Deal Hon. George F. Pott, Jr. on. Dwight Evans Hon. Carmel Sirianni 3n. Stephen Freind Hon. William J. Stewart an. Allen Kukovich Hon. Ted Stuban m. Joseph Levi, III Hon. Edward A. Wiggins sn. Stephen E. Levin Hon. Peter R. Vroon .SO PRESENT: m. John S. Davies sn. Edwin Johnson >n. Samuel W. Morris >n. Thomas M. Tigue Reported by: Lck Willey, Majority Staff Dorothy M. Malone |<egiste-rea l-'rofeitionai |<eporter \-\ ummelttown, |—'ennsrq'vania 17036 INDEX itness Page r. Sheldon Hackney, President 8 r. Thomas Langfitt, Vice President for Health r. Robert Marshak, Dean of Veterinary Medicine r. Edward Stemmler, Dean of Medicine elen O'Bannon, Senior Vice President len Stine, Director of Budget Analysis i ! " I i ACTING CHAIRMAN COWELL: The next scheduled witnesses are representatives of the University of Pennsylvania. 3r. Hackney, will you introduce your colleagues, particularly For the benefit of the court reporter. DR. HACKNEY: Let me say how delighted we are to ?e here to talk with you about the University of Pennsylvania ind I will introduce my colleagues. On my far right is Glen Jtine, who is the Director of Budget Analysis. Next to him is ielen O'Bannon, Senior Vice President, whose responsibility j Ls to cover all of our business operations, personnel functions i ind finances. To my immediate right is Tom Langfitt, Vice i President for Health. To my immediate left is Robert Marshak, )ean of Veterinary Medicine, and next to him is Edward Stemmler, )ean of Medicine. We are pleased to be here. We come with the jelief that the University of Pennsylvania plays a very impor tant role in the economy and cultural life of the Commonwealth. tfe implore your sympathetic consideration. With that we would Love to respond to questions. ACTING CHAIRMAN COWELL: Questions from the Committee members or staff. REPRESENTATIVE LEVIN: I would like to focus on sage four, University City Science Center and Advanced rechnology Center of Southeastern Pennsylvania. I think the aembers would benefit from your comments about both of these 1 i i I mtities, how you hope all of Pennsylvania will potentially benefit from this. DR. HACKNEY: The University City Science Center Ls a unique organization that was created as a consortium with :he University. It is really a nonprofit organization that louses and incubates new businesses, provides space and service. Lt is an urban center. It is a bit different from similar ventures elsewhere. Also, it is successful. The University City Science Center is the manager )f the Advanced Technology Center for Southeastern Pennsylvania /hich the University of Pennsylvania is a member as well as )rexel, Temple and several other institutions. I think it is »oing to pay great benefits in the future. Our own research at :he University of Pennsylvania focused so far on computer sensing devices that is enabling computers to learn from their mvironment by sensing what is out there and then reprogramming >r controlling the activity of whatever is controlled by the :omputer in response to what is there in the environment. So it is a very sophisticated way of making robots, if you will, jr making other computer controlled devices much smarter and auch more able to operate in a sophisticated way. Let me turn now and ask Tom Langfitt, who has been aore involved with the Advanced Technology Center and the Jniversity Science Center than I have to expand a bit on what Lt does for Philadelphia and for the Commonwealth. DR. LANGFITT: The Science Center was developed ibout 20 years ago and was really the first Urban Industrial Research Park established in the United States. There has i >een many since then. Over the past 20 years, the investment j ias really been enormous. The total capital investment is nov n the neighborhood of about $50 million. And the Science lenter employs about 5,000 people. If you take a look at the »ossibilities of further development in West Philadelphia, we ire probably talking about a total capital investment of a [uarter of a billion dollars and an ultimate employment of ;ome 20,000 people. As President Hackney has indicated, it is i in organization that was established by and supported by some i i0 institutions of higher education. Not only in the Delaware telley but extending up to Lehigh and this other southeastern 'ennsylvania. So the Science Center was a natural vehicle or developing the Benjamin Franklin Partnership Advanced echnology Center. We at Penn participated very heavily in hat development in the past couple of years. When we received about two and a half million lollars from the state as part of the ten million dollar •verall allocation, but toward that goal of matching we were ible to come up with about $14 million in matching grants, tost of which came from corporations. So we look forward now :o further development of the Science Center, and especially :urther development of the Advanced Technology Center. We 6 Lhink that this is really one of the great things that the Commonwealth of Pennsylvania has done in recent years for the people of the Commonwealth and the economy of the Commonwealth. tod we are very pleased and proud to be able to participate in this. We are looking forward to even more activity in that area. 3Y REPRESENTATIVE LEVIN: (To Dr. Langfitt) Q I think you know we are vitally concerned here *ith the declining smokestack industry concept and the fact that all of us, that is Republicans and Democrats alike and rural and urban Legislators are vitally concerned with finding some way to get Pennsylvania back moving as a state. It is /ery apparent from the statistics that we have seen that we ire going to lag behind the national economy in the recovery. Vnd if we don't do something about it, that may very well be i permanent structure with us being in a very unhappy situa tion. We have been enticed, and that's the reason the Ben franklin Partnership exists, into investing state moneys with i goal of getting high tech, if that word has any meaning any lore of industry into fruition both in the city and in the jtate. I think that we are very fortunate that Penn exists there it is to be a focal point of that kind of thing. Following up on that, I am aware that Penn has significant federal research going on. Would you want to :omment on how that might interact with the same kinds of redevelopment with high tech? A Yea, well our research support now, the total research budget for the University, most of which is in federal funds, is about $150 million. Of that about half, a little over half is in the biomedical research, the Medical School, the Veterinary School, Dental School and so on. So in that regard then we are very pleased. We bring in, almost all of this money comes in from out of the state and we bring in a very large amount of money which, of course, creates jobs and creates new ideas through research. In fact, it is that federally supported research base, which we have enjoyed now for quite some time and which continues to grow, that really provides kinds of ideas and the kinds of scientists who are there now to take advantage of the Advanced Technology Center concept, that is to take these basic research ideas, some of the advanced research ideas, translate them through the process of technology transferred into new products. New products then, of course, extend into the economy in creating jobs. So that so-called high tech industry, and we have known this now for 25 years, develops around institutions such as ours. The best examples being the so-called Silicone Valley, which is the semi-con ductor industry that has developed around Stanford and, of course, the Route 128 industry that developed from Harvard and MIT, many years ago research Triangle Park in North Carolina. The Science Center is just that. It is exactly that. And we think that we are just set up in a very good position right now to take off in development of these new Industries based upon a research enterprise. Q Just one more. Mr. President, you have been at ?enn now for a number of years. You have been coming here on a couple of occasions. How many years have you been coming? DR. HACKNEY: Just three, but I feel like an old land. 3Y REPRESENTATIVE LEVIN: (To Dr. Hackney) Q Well that should give you enough time to feel part }f the community and part of Penn. What are your plans for the future and what do you see? A Well, we actually had some very exciting things going on.