Penn State, a charter member of C-Net, said it will no longer foot the company's rent bill after it moves from a campus building to a municipal location early next year.

C-Net operates the local government and education television channel and frequently runs Penn State programming.

In return, Penn State provides C-Net with office space to subsidize the money it would be expected to pay for programming.

C-Net decided to move from its offices in the James Building to a larger space in the State College Borough Municipal Building. Since it would no longer use Penn State accommodations, C-Net asked Penn State to pay for the programming.

"The cost for membership is determined by the percentage of use in the previous five years against other members," said James Rossi, executive director of C-Net. Penn State's usage percentage would require the university to pay $27,000.

"Penn State has no problems with C-Net, however, we decided that we are not interested in paying for the services at this time," said Dan Sieminski, assistant vice-president of finance and business.

Doug Anderson, dean of the College of Communications, said he understands the importance of C-Net while simultaneously understanding Penn State's budget restrictions.

"This is a difficult budgetary time," Anderson said.

Penn State spokesman Bill Mahon said Penn State couldn't take on the financial burden, "particularly in light of the Commonwealth's recent freeze of $3.4 million in state appropriation for this year."

In response to Penn State's decision, C-Net created non-member rates.

"The non-member rate card will allow C-Net to continue our relationship with various classes and organizations," Rossi said.

"I think James' plan for non-member rates is a good solution," Anderson said. "This will allow each college to pay for only what they use."

Anderson also said he is not concerned about the effects of the changes on students.

"We will provide students with the same options as before," he said.

Although the non-member rates will enable the colleges to air their programming on C-Net, some student-run clubs might not have the same opportunities.

Penn State News Magazine, a student organization that produces shows aired on C-Net, faces that problem.

"There is now a financial burden that falls upon the students," said Tiffany Parker, club president. "While we could petition UPAC (University Park Allocations Committee) for money that would take a lot of time, and in the meantime, we would lose viewers and opportunities for students to be involved in competitions."

Rossi said the largest consequence Penn State's decision will face is a tarnished image.

"C-Net allows Penn State to share information with the Centre County community," he said.

"Not participating in communication with the community may hurt Penn State's image."

As for the effects Penn State's withdrawal will have on C-Net, it is visible in the budget, Rossi said.

"Without Penn State's membership, the budget will be hit hard," Rossi said, adding that although C-Net will lose money from its reserve and capitals funds, it is adamant about keeping the operations budget the same.