It sits in Centre County, which was largely 2:1 for Bush over Kerry...but State College itself was about 1:1 and is far from conservative these days, with the large university influence. It's far from Boulder or Berkeley, but it's not like it once was.
However, I fear that today's students, for example, don't see the absurdity of paying Patrick Califia-Rice (described as an "advocate for sadomasochism and sex with children") to speak at the campus...they have already been numbed to such deviancy.
I was really differentiating between the town and the campus. The campus is as you state fairly liberal, as are most. However, I would say the town itself is still quite conservative.