No, they worded it so it´s easy to misunderstand. The 20 scholarships affect the total 85 allowed.
Yes, the wording wasn't clear. But they're still losing 10 scholarships per year right? And when do they have do get down to 65?
Penn State must also reduce 10 initial and 20 total scholarships each year for a four-year period. In addition, the NCAA reserves the right to impose additional sanctions on involved individuals at the conclusion of any criminal proceedings
http://ncaa.org/wps/wcm/connect/public/ncaa/20120723/21207231