Once the state formally accepts that notice, PSU's chapter of the American Association of University Professors and the PSU administration will have seven calendar days to submit their final contract offers, said Linda Gregg, a coordinator with the employment board.
PSU President Wim Wiewel has said the university must trim $7.5 million from its operating budget for next year, even after making other budgetary moves such as saying administrators making more than $100,000 won't get raises and telling the football team it won't get a university subsidy any more.
Both sides are fighting hard over how large raises will be for tenure-track professors. The union initially sought 5.5 percent yearly raises and the administration offered raises of 1 percent in a new two-year contract. More recently, they came closer, with the administration offering cost-of-living raises of 1.5 percent and the union holding out for 3.1 percent.
Other issues, including faculty say over tenure decisions and timing, also have divided the sides.