Paco, If Pitt is indeed privately governed, OWNED, and led, how can the legislature revise the charter of a private institution? Wouldn't that be similar to the state legislature having the ability to put a private company, say Google or Iron City Beer, out of business? Why does Pitt even need a Charter if its a private school. I assume Chatham and Carlow are private schools. Do they need and have charters from the state? I'm not advocating breaking from the state, just curious. BTW, when I went to Pitt back in the 70s my out of state tuition was $960 a year, double the in-state tuition of $480. Room and board were the same for all, as I remember.
I do think that if we were totally private the state would not have funded the significant portion of the Pete ($100 million or so???)
Charters for academic institutions from ruling authorities go back hundreds and hundreds of years in Europe as they designated these institutions some autonomy to operate. Universities, for instance, would have their own internal laws, law enforcement, even jails.
Take the University of Pennsylvania. Its progenitor received its charter in colonial days from the Penn family for an academy in 1753, with another in 1755 to add a college. Penn was granted a university charter from the state in 1779 with subsequent revisions by acts of the legislature.
For Pitt, the state charter, and revisions thereto, gave Pitt's trustees the authority to create, at different times 1) an academy in 1787, 2) a university in 1819 3) a change of name to "University of Pittsburgh" in 1908, 4) integrated into the Commonwealth System of Higher Education in 1966. Each of these took acts of the state legislature. There were other amendments and supplements to Pitt's charter, but those 4 are the biggest ones. The charter essentially gives the institution and board of trustees legal standing before the Commonwealth to conduct business, transactions, lawsuits, etc, and defines the rights and privileges and the institution’s functions, just as in more ancient days.
The 1966 charter revision incorporated Pitt into the created Commonwealth System of Higher Education (to which Penn State, Temple, and Lincoln also belong). Pitt's legal name was changed to the "University of Pittsburgh -- of the Commonwealth System of Higher Education." It exchanged financial support, originally ~1/3 of Pitt's overall budget, for 1/3 representation on its board of trustees and Pitt's agreement to provide tuition discounts for Commonwealth residents. It also made Pitt an "instrumentality of the state," which meant Pitt could issue its own tax-exempt bonds and the state could do things like enact eminent domain on its behalf. It gave the state's Department of General Services the ability to fund and manage construction projects on behalf of the university and then turn them over to the university (as was done most recently for the Pete, although GSA management of Pitt construction projects was also was done prior to Pitt becoming state-related but the state would usually hold the deed). It set up the non-preferred funding status for Pitt and the other 3 schools, which is why these universities are funded by separate appropriations outside (and after) the overall annual state budget (PASSHE schools are funded with the overall state budget).
Here's the current status of Pitt. 1) 2/3rds of its board of trustees are selected by the said board on its own terms. 1/3 are appointed by the state (per the 1966 charter). Therefore, it is effectively privately controlled and governed. 2) The officers of the university, including the chancellor, are selected and appointed by this privately controlled board. 3) No employees of the university are employees of the state or applicable for any state benefits, not even the PA State Employee Credit Union (PSECU). They are employees only of Pitt. 4) All assets of the university, include the university owned physical plant and endowment, are under control and managed by the board of trustees. It is not owned by the state. However, the state does maintain the deeds of several buildings that it constructed on behalf of the university, including Hillman Library and Crawford Hall, just to name a couple off the top of my head. In contrast, it transferred ownership of the Pete to Pitt after construction was finished.
Note that Temple and Lincoln are similarly construed in status and governance, while Penn State is not because of its much more public-like history dating back to it receiving land grant status. PSU, at times, has for much of its history been considered "public" because of its land grant status and has a much different board make up with various state appointees and appointees from different state organizations (elected from state agricultural and business societies) and alumni voting. Penn State's board does not have effective private control over its own board membership makeup, although neither does the state have full control; rather, control is more distributed between the state, the state ag and business societies, alumni, and the board. Also, PSU employees are eligible for some state benefits (including state employees retirement system and PSECU membership). So it is much more of a public university, including historical alignment with the state.
However, all four schools in the system are referred to the state as "state-related" universities, despite any differences in governance at the institutions. It is a hybrid system, and unique in this particular way it is construed in the US. Because they are not state owned and controlled institutions is why they are excluded from the public open records laws, a huge advantage over competitive public peers in retaining faculty and none of the schools have any interest in giving up this exclusion. But all these schools will decribe themselves as either public or private depending on how falling on that line will serve there own particular interests on any issue.
These 4 schools, despite not being truly public, obviously have characteristics of being both private and public. The most striking public characteristic is that they offer discounted tuition to residents of the Commonwealth. That is why you see them listed as "public" universities in most third party publications like US News, etc, even though it doesn't necessarily truly represent the status of the institutions. These publications get the status from either the government IPEDS data or the Carnegie classifications. There are only two categorization buckets to choose from on these lists: public or private. Because these schools have "in-state" tuition discounts, they all get dropped in the public bucket and that is why you always see them listed as "publics" in such publications. Really they should be in a hybrid third bucket, but even within this same hybrid system, PSU is pretty different than the others.