The U.S. Department of Education has directed Gov. Ed Rendell to re-submit an application for federal economic stimulus money, this time counting the four state-related universities as public institutions of higher education.

The governor excluded the four schools -- the University of Pittsburgh and Penn State, Temple and Lincoln universities -- from the application for state fiscal stabilization funds filed late last month, saying they are not "under the absolute control of the Commonwealth." He included the 14 state-owned universities.

However, in an e-mail sent to the state yesterday afternoon, the federal department said that the four schools "must be considered" public institutions of higher education under the State Fiscal Stabilization Fund program. This does not necessarily mean they are guaranteed money.

"As a result, Pennsylvania must revise its application to reflect state support for these institutions," the e-mail stated. "Each of these institutions is eligible for support under the SFSF program."

In determining the amount of money requested for the schools, the e-mail states, "The governor may take into consideration the extent to which an IHE [institution of higher education] agrees to limit tuition increases for in-state students."

While the universities are eligible for federal stimulus money, Donna Cooper, policy secretary for the governor, said there is no guarantee that they will receive the money. She interprets the federal directions as mandating that Pennsylvania consider the amount it had provided to those schools as part of the required maintenance-of-spending effort. States are required to maintain education spending at at least 2005-06 levels. But she said the governor has the authority to recommend how the stimulus money will be distributed, a decision that will require legislative approval.

A statement provided by state Education Department spokesman Michael Race said, "Given the governor's unparalleled support for higher education, the (federal) department's decision reinforces the state's ability to decide how to allocate these federal funds among our colleges and we remain committed to using those funds where they can have the most impact."