Pennsylvania's public schools could get $437 million more than they were expecting under Gov. Ed Rendell's proposed budget and the four state-related universities could bank an additional $42 million, thanks to the federal stimulus money headed this way.

Rendell announced Tuesday he plans to use $418 million of the stimulus money to boost the state's basic education subsidy to $5.98 billion in the next fiscal year. The basic education subsidy funds public school operations and instruction.

Rendell originally proposed increasing the subsidy by $300 million from state funds. Now that $300 million would be available to plug other budget gaps.

The governor is also proposing $319 million of stimulus money for school districts to spend on ''other academic investments'' and keeping property taxes down. Districts could spend that portion on modernizing, renovating or repairing their schools, on basic or special education, career and technical education, or adult and family literacy programs, said Education Department spokesman Michael Race.