Penn State University wants the Obama administration to stop Gov. Ed Rendell from reclassifying it and three other state-related universities as non-public and ineligible for $42 million in federal stimulus aid.

In a letter to U.S. Education Secretary Arne Duncan, Penn State President Graham Spanier said removal of the four schools from Pennsylvania's stimulus application is of "great concern" and has implications for other states if their governors are allowed to take similar actions.

An accompanying opinion from Penn State's legal counsel asserts the university's standing as a public entity dates at least to its designation in 1863 as Pennsylvania's land grant institution.

"By arbitrarily re-defining The Pennsylvania State University as non-public, simply because we are not 'under the absolute control of the Commonwealth,' the governor is setting a dangerous precedent that the Department of Education should address," Dr. Spanier wrote. "If the department approves this application as it is written, it gives governors in every other state the ability to pick and choose which public institutions they may support with federal dollars."

His letter, dated Monday, urged Mr. Duncan to reject the application and compel the Commonwealth to use stimulus money "for every public institution of higher education in Pennsylvania," including Penn State and the three other state-related schools -- the University of Pittsburgh, Temple University and Lincoln University.

The governor of late has expressed displeasure with those schools over the size of their tuition increases and other policies. Losing stimulus aid would further squeeze those schools, already facing the prospect of significant funding cuts due to the state's fiscal crisis.

Both Pitt and Penn State are days away from setting fall tuition rates.

The four schools were expecting to use stimulus money to offset a 6 percent funding cut in the governor's proposed 2009-10 state budget. A preliminary stimulus application dated April 24 and signed by Mr. Rendell earmarked about $20 million in stimulus aid for Penn State; $10 million for the University of Pittsburgh; $11 million for Temple University, and $870,000 for Lincoln University.

But on Friday, as he announced more proposed budget cuts, the governor signed a revised application omitting those schools. Added in their place were community colleges and the 14 state-owned universities that include California, Clarion, Edinboro, Indiana and Slippery Rock in Western Pennsylvania.

The revised application said state-related schools, though recipients of limited tax support, fall within a category of institutions "not under the absolute control of the Commonwealth."

Dr. Spanier said that interpretation is at odds with the American Recovery and Reinvestment Act, which he said is intended to shield students at tax-supported campuses from unreasonable tuition hikes.

But past tuition increases by the state-related schools -- as high as 14 percent -- are what Mr. Rendell has cited as evidence they are not under state control and are "not fully public universities."

In 1998, about $2,400 separated yearly tuition at the 14 state-owned universities from the base main campus rate at either Penn State or Pitt. The difference now tops $7,400, partly because the state-owned schools since 2005 have kept increases within inflation. Currently, a year's tuition at the state-owned schools is $5,358. Base tuition is $13,014 at Penn State and $12,832 at Pitt.

"The governor has been asking universities to limit tuition costs as much as possible. The State System schools were very responsive," said Rendell aide Barry Ciccocioppo.

Asked if the state-related schools were responsive, he added, "Not so much."

The state-related schools say tuition comparisons are unfair since their research campuses have missions and costs different from a state-owned school. They say they have already faced harsh funding cuts. In Penn State's case, it has been $48 million since 2001.

A classification unusual in higher education, Pennsylvania's four state-related schools straddle the line between state and private campuses. They offer lower rates for in-state students and receive part of their budget from the state, but they have more autonomy and are not subject to the same public disclosure requirements as state universities.