Penn State officials said they do not plan to lay off any employees in the wake of last week's $3.23 million cut in state funding.

Deans and administrators of each affected unit within the university will be responsible for making budget adjustments, just as they were after the previous 1 percent reduction in December, said Penn State spokesman Bill Mahon. Some unfilled positions will remain open longer to help cover the lost funding, he added.

This year's state appropriation now stands at $316.14 million, down from the initial 2002-03 allocation of $322.59 million, according to figures released by the university Friday.