HERSHEY -- Money -- or the lack of it -- was a popular topic at the University Board of Trustees meeting in the Milton S. Hershey Medical Center on Friday and Saturday.

University President Joab Thomas told the trustees that Gov. Robert P. Casey's proposed non-increase in appropriations to the University is equivalent to a 4 percent budget cut.

"We have unavoidable cost increases in areas such as health care insurance, federal and state environmental requirements, fuel and utility costs, increases in maintenance and operations for new facilities," Thomas said.

The University is trying to convince the state assembly and Casey that the University needs more money, Thomas said, adding that he has not heard about the status of his request for more funds.

Thomas proposed a $33 million increase to the Senate Appropriations Committee last month and testified on the need for additional funding to the senate and the House Appropriations and Education Committee in Harrisburg.

The Commonwealth does not understand higher education's impact on the overall state economy, Thomas said. University Park annually generates about $1.2 billion for the state economy, he said. The University also employs about 89,000 Pennsylvanians, Thomas added.

Indirect financial benefits, such as technological advancements created or discovered by University scientists, triple the state's gain from University services, Thomas said.

"In our discussions with the legislators, we stressed particularly Penn State's quality and accomplishments," Thomas said. "A message that I believe we must spread more aggressively across the entire commonwealth of Pennsylvania."

If the state approves the governor's request for a funding freeze, Thomas said a tuition increase greater than the planned 6 percent is inevitable. Thomas said there is not enough data to estimate the amount of an increase.

Thomas said the state should contribute more money to higher education to better its ranking as 47th in the country for state support to higher education. More state funding is a realistic goal because in 1970 the state was 23rd in higher education funding, he said.

Thomas said he urged clubs and organizations in Pennsylvania to campaign for additional funding.

Undergraduate Student Government President J.P. Muir told trustees that all parents of undergraduate residents students received letters asking them to write their congressmen about the need for more funding. Affordable tuition must be made available for all students, Muir said, and if more cuts are made the University must plan carefully.

"With budget constraints we look not for quick-fixes such as larger classes or smaller periods of access time to computer and library facilities," Muir said. "We all understand budget constraints, but there are critical areas which must not be touched."

Student trustee E.J. Shaffer said that Thomas listened to student leaders' concerns during the recent budget crisis. Thomas made sure academic programs were minimally affected, Shaffer said.

The University has received some support from the state. The state released $33.8 million for four University Park capital projects -- projects benefitting the state economy -- including an agricultural science facility, airport improvements, a coal de-sulfurization center and the academic and athletic convocation and events center, Thomas said.

Thomas said the state is more inclined to give money for projects the University has already contributed to, he said.

The University will resubmit the funding request for the HUB expansion and the new Paul Robeson Cultural Center, Thomas said. The governor may reconsider funding for the projects because the University recently pledged $2 million to the projects, he said. The general assembly approved the project in the 1990-91 budget, but the governor cut it.

The University continues to lobby for other capital projects such as the addition to Pattee and a new engineering building at University Park, Thomas said. The state has shown interest in the projects, Thomas said, but it has also shown interest in many other non-University projects.

Trustee President Mimi Coppersmith Fredman said the University must seek ways to cut costs during financial difficulty and keep tuition down to maintain Penn State's mission of educating the masses, she said. The University must increase the amount of student scholarships and grant fellowships also, Coppersmith Fredman said.