NEWS WEDNESDAY, JUNE 21, 2006 THE UNIVERSITY DAILY KANSAN NEWS THE UNIVERSITY DAILY KANSAN 3 BANK ACCOUNTS CAUSE DISCUSSIONS Kansan accounts may be consolidated to operate within University, state and federal regulations BY JOSHUA BICKEL jbickel@kansan.com KANSEN SANST STAFF WRIVER Members of The University Daily Kansan Board and the University of Kansas are discussing the possibility of consolidating the Kansan's bank accounts into one University account. Some members of the Board are concerned that consolidating these accounts would give the University control over parts of the Kansan that are now independent from University governance. "Basically, the University and the state would govern our money," said Jonathan Kealing, Kansan editor for Fall 2006. "They would cut our check and be our banker." Right now, the discussions between the Kansan and the University are focused solely on how to make the Kansan operate within the University, state and federal fiscal financial regulations, said Ann Brill, dean of the School of Journalism. During Monday's meeting, the Board came to a consensus to suggest that the University not consolidate the accounts, according to the meeting's minutes. Kealing also added that this shift would limit the Kansan's ability to interact with advertisers and pursue legal actions, because the state, not the Kansan, would decide how the money is spent. "We wouldn't be able to do business," Kealing said. But the Board is not in a position right now to know exactly what to do, said Rick Musser, chairman of the Kansan board. Currently, the Kansan has two bank accounts: A student organization account with the University, and another outside account at a Lawrence bank. Consolidating these accounts would also move them from three interest-bearing accounts to one non-interest bearing account, meaning the Kansan would lose between $1,000 to $2,000 per year as a result of lost interest, Kealing said. ern its money, as long as all funds are reported. Specific laws also allow student publications to independently gov- Kansas law 76-720 states that student publications published regularly since July 1, 1955, are able to hold accounts in local banks outside of the University. The Kansan has published five days a week during the fall and spring semesters since Jan. 16, 1912. However, it's not uncommon for a university to manage the funds of a student newspaper, said Mike Hiestand, legal adviser for the Student Press Law Center, a non-profit organization based in Arlington, Va. But these days, it's common practice for universities to divest themselves from a student-run media, in order to shed themselves of any liability, he said. It's not common practice for independent student publications, such as the Kansan, to have its funds controlled by a university, he said. "That's the nature of being independent," Hiestand said. of student media finds,he said. Only in cases where it's believed the money has been mismanaged do universities step in and take control But that's not the case with the Kansan. "I don't want to create concerns that the Kansan was mismanaging money," said Diane Goddard, University comptroller and associate vice provost. Part of the reasoning for the shift were concerns about payroll, which have since been resolved, Goddard said. She added that any number of solutions to this situation are viable, as long as payroll runs through the University. "Anything can be facilitated from a comproller's point-of-view," she said. "But a decision needs to be made." Another reason for the shift deals with the specific mission of the Kansan. According to article two of the Constitution of the Kansan, the purpose of the Kansan is to "serve as the official newspaper of the student body of the University of Kansas and as the laboratory newspaper of the William Allen White School of Journalism and Mass Communications." Because the Kansan is both an independent newspaper and a laboratory for the School of Journalism. "it allows you to look at it from many different ways," Goddard said. However, a revision to the constitution is currently under review by Chancellor Robert Hemenway that would essentially remove the "laboratory" designation from the document, said Malcolm Gibson, general manager of the Kansan. Another concern raised was issues relating to the First Amendment, Musser said. Brill, a "staunch defender of the First Amendment," said that the School of Journalism has a responsibility not only to educate its students about the skills and ethical practices of journalism, but also making sure students understand the business and financial aspects of journalism. And Hiestand agrees that shifting money to a university account isn't a direct violation of the First Amendment. "But it certainly opens the door to allow the school to manipulate content," he said. Edited by Janiece Gatson