Penn State’s 2011-12 State Appropriation finalized on June 30 at $279 million...
Total Budget:
$4.1 billion
http://www.budget.psu.edu/BoTJuly/July%20Board%202011%20-%20FINAL.pdf
This doesn't mean Penn State runs a pension system.
6.8% of budget also doesn't make Penn State a state university, whatever the name may say. Penn State is a private land grant. The governor gets exactly ONE vote on the Board of Trustees. He may even lose that if PSU decides it's not worth it for <7% of funding.
Several schools beside Penn State (Temple, Pitt) receive money from the Commonwealth. That doesn't make them state schools, either.
The Pennsylvania University system has nothing to do with the Penn State University System; it consists of Shippensburg, Lock Haven, Bloomsburg, Kutztown, East Stroudsburg, (maybe others which FReeper alums will make me aware of if I've missed them, I'm sure.) Those are the actual state universities in PA.