When the state of Pennsylvania decided to stop giving money collected from University parking violation fines to the State College Borough, nobody bothered to tell the borough.

Now borough officials are scrambling to compensate for an $85,000 loss in 1993 revenues, and borough taxpayers may be handed the bill as part of a proposed 2-mill real estate tax increase in the 1994 budget.

"This is megadollars," said Borough Manager Peter Marshall.

Marshall and Parking Manager Ed Holmes said the borough was first aware of University-collected fines going to the state when officials discovered an unanticipated lack of revenue when preparing the 1994 budget.

A decision was made by the administrative office of the Pennsylvania courts about July 1. Because the University is considered state land, the money belongs to the state, Holmes said. All violations issued under the Pennsylvania Vehicle Code on campus now revert to the commonwealth.

"And with no fanfare, no announcement, no anything -- (the commonwealth) just started sending (the money) there," Holmes said.

University Police Services Supervisor Dwight Smith said all fines go to the district justice, who sends the money to the commonwealth, which then distributes it. "It really is beyond our control," he said.

Although the state is probably within its legal rights to collect on-campus fines, State College Borough Council members are looking into the state's decision, Marshall said at a council work session Friday.

"It's one more example of the state doing something . . . without considering the financial effect of local governments," he said.

State College Police Chief Tom King is heading the borough's search for some answers. The law, which the borough has followed in the past, states that half of the fine goes to the municipality in which the fine occurred and the other half goes to the commonwealth, King said.

"This has always been the interpretation and this has always been the law," he said. "We want to know what has changed."

But so far, King has been unable to obtain any knowledge of a change in legislation. He said he has been in contact with state Rep. Mike Hanna, D-Clinton, who has not been able to give him an answer.

Hanna was unavailable for comment.

Council members Ruth Lavin and Jean McManis recommended the borough explore options to recover the losses at a work session Friday. "I really think we need to pursue this action," Lavin said.

McManis suggested the council deputize University Police Services so the borough could once again collect fines issued by the University.

Not all Pennsylvania colleges hand over their on-campus parking violation fines to the state like the University does.

"Our's stays here at the university and it goes right into our general fund," said John Frances, Clarion University comptroller. Although Clarion is a state-owned institution and Penn State is state-related, both have parking officers who work only on campus.

Private institutions such as Allegheny College in Meadville also keep any parking fines for their own use, said payroll clerk Mary Jane Webb. The only student fines not kept by the college are those violations that occur outside of the campus borders, she said.