As R. Thomas Berner begins his tenure as State College Borough Council president, a major item on his agenda involves an impact fee placed on the University.

The fee would require the University to make up the estimated $1.5 million in real estate taxes it does not pay as part of its tax-exempt status, Berner said. It would also generate more money for the borough, lower taxes and ultimately attract more families to the area, he said.

The fee could help solve the borough's dilemma of a decreasing tax base, which resulted when more students moved into State College and more families left the area, he added.

"The demographics are changing, and there is a smaller number supporting through taxes," he said.

With the impact fee, Berner believes the tax burden would be reduced, helping to lure families back to the borough through reduced earned income taxes, thereby preserving balanced neighborhoods.

Many students come to the University because they find State College an attractive place to teach and learn, so the fee would be in the University's best interest, Berner said.

This combination of advantages for the University and the borough is a scenario Berner termed a "win-win situation for everyone."

Although he said he does not have any specific ideas on how to implement an impact fee, Berner quickly pointed out the state's involvement in any action that takes place.

State Rep. Lynn Herman, R-Centre, is planning legislation to provide state money for tax-exempt institutions like the University.

"We're trying to help alleviate the cost for services due to the eroding tax base with the presence of large state facilities," Herman said.

But in the near future, the University may encounter trouble in supporting an impact fee for the borough due to the freezing of $9 million in state funds allocated toward the University, announced last week by Gov. Robert P. Casey.

"The University has been making an effort to get plugged in and become more responsive to (the borough's) needs," said Bill Mahon, the University's director of public information.

Both Mahon and council member Thomas Daubert agreed the University has good intentions to help the borough, but a tighter budget makes carrying out these plans a difficult task.

"As a long-term project, it is certainly a good idea," Daubert said.