If the state doesnt want to pay for any of it, what makes you think they are going to cut costs in other areas to make up for it?
It doesn't matter what pot you take it from.
Well the State absolutely doesn't want to have it appear they are paying for that - nobody is on the Pens side on that one, not even Pens fans - that's likely why this is the last holdup
But, lowering the up-front payment was already part of the negotiation - and if you look at what the city has paid for land, they have overpaid somewhat - I remember some parking lot they bought where the owners made a ton of profit after owning it for only a short period of time - so overpaing for that hospital land by a couple mil can be reasoned with what they paid for the other properties
In effect, the State helps pay for the IoC poison pill without doing so