That is a completely ridiculous and incorrect argument. Eye roll. Civics lesson follows.
Penn State absolutely is subject to the PA open records law. See Chapter 15 of the PA Right-to-Know-Law if you have any doubts. In contrast, the RTKL does not apply AT ALL to UPenn.
The RTKL applies differently to different types of governmental entities. The PA Governors office is treated one way under the law. The PA Legislature is treated another way. The PA courts are treated yet another way. Temple, PSU and Pitt are treated yet another way. The reason why PSU doesn’t have to turn over as much info as other state-related operations is because PSU has a good lobbyist in Harrisburg; not because PSU is not a state school.
Also, fyi, PSU (as a state-related entity) is subject to hundreds of other PA state laws that apply to PSU but which do not apply to UPenn. Also, PSU (as a governmental related entity) is subject to lots of federal laws that don’t apply to UPenn.
For example, the First Amendment of the U.S. Constitution. It applies to government schools like PSU (via the incorporation by SCOTUS of the Bill of Rights against the States). UPenn (as a PRIVATE school) can restrict free expression in its student codes of conduct in ways that PSU (as a STATE school) cannot.
PSU is a state-chartered university just like every other university in the country (except for UPenn I think) whose name is either University of [State] or [State] State University. But not every university charter is identical. Just like the charter of every public elementary or secondary charter school is not identical. But charter schools are clearly still government-related schools and not private.
Cornell’s status as a state school is pretty unusual. PSU’s is quite generic and usual.