However, Bill Mahon, Penn State spokesman, said the figures released this week are just starting points. After the state legislature deliberates, the actual appropriations can be higher or lower.

Penn State received just under $332 million for 2000-2001. Ridge's latest budget would add an increase of 0.62 percent to that number for next year.

"This is probably a little lower than we would've anticipated," said Steve MacCarthy, Penn State spokesman.

In September, the Penn State Board of Trustees put in a budget request of $361 million in state appropriations.

This month, Penn State President Graham Spanier will do his best to move the total closer to the level of that request when he lobbies in Harrisburg.

The governor's estimate for Penn State tends to be low, while the lawmakers usually end up approving a slightly higher amount, MacCarthy said.

Besides the state university appropriations, Ridge announced plans for two programs that concentrate on issues surrounding all college students in the state — how long it takes them to graduate and where they go afterwards.

Again this year, the governor hopes to award $8 million in incentive grants for colleges and universities that graduate a minimum of 40 percent of students in four years.

He also spoke yesterday about a $10 million initiative to keep Pennsylvania graduates from leaving the state in search of jobs elsewhere.

"If you don't keep your best and brightest at home . . . you can't achieve greatness," Ridge said in his address on the budget.

"Companies tell us they want to stay in Pa., but they need the talent to grow. Students also tell us they want to stay, but they're unaware of the job opportunities Pennsylvania has to offer," he said, emphasizing the need for the "Brain Gain" program.

"If we build it, they will stay."