Penn State is in the unincorporated area called University Park, not in State College. The University Park police force is just about the same size as the police force in State College. Although Penn State somewhat dominates the State College area, it isn't by any means the only thing there. Not sure all of the tax payers of State College would be keen to double their police budget just to make sure that college students are kept in line.
This is a fact many people don’t seem to get.