CARLISLE — Penn State's tuition will increase 13.5 percent next year, under the budget presented by Penn State President Graham Spanier yesterday to Penn State's Board of Trustees.

The trustees will formally vote on the budget this morning, which also includes a 6.8 percent increase in room and board and a 9.4 percent increase in other fees. The total increase comes out to 10.6 percent.

If approved, this will be the biggest increase since 1982. Undergraduate tuition for in-state students at University Park will cost slightly more than $8,000 a year, an increase of about $1,000. Out-of-state students will pay slightly more than $17,000 a year, up from about $15,000 this past year.

Tuition comprises more than twice as much of the budget than state appropriations, after the state cut the university's funding 3.65 percent. Spanier told the trustees this was only the second time the government cut Penn State's appropriation since the period from 1933 to 1935.

The student activity fee will increase $1 to $42 at University Park, and the information technology fee will also increase by $15 to $145.

While announcing these increases, Spanier also told the trustees about a new scholarship campaign the university is embarking on.

Known as the Trustee Scholarship Program, the university will match 5 percent of any donation to this program that is at least $50,000. Endowments tend to generate 5 percent of the donation in spendable income each year, so Penn State's match essentially doubles the donation.

These need-based scholarships can be directed toward any college or campus in the Penn State system. The university is making available at least $1 million from the general funds budget to this endeavor this year, and will add $1 million of new funds each year for the next five years.

Spanier added even if the donor pays in installments, the gift will be matched immediately.

"I think that this will be attractive to potential donors because they will have up to five years to complete their pledge commitments and endow their scholarships while they have the immediate satisfaction of seeing their generosity actually make a difference in the lives of our students," Spanier said.

The focus of the meeting, however, was on the increase in tuition and what is seen as a lack of state support for the university.

Trustee Steve Garban said while the Trustee Scholarship Program looks promising to help alleviate financial difficulties, Penn State still is faced with a lack of state funds.

"Our problem is with the total number of dollars we have."

Compared to other top universities at the level at which Penn State aspires to be, Garban said the difference is those schools are able to spend more money because they get more money, adding University of Michigan spends twice as much as Penn State does.

"We just can't count on tuition and the Grand Destiny (fundraising) campaign as our answers," he said. "We must continue our efforts."

Spanier, who focused on the overall 10.6 percent increase in tuition, room and board, and fees, rather than the 13.5 percent tuition increase, noted that several other Big Ten universities raised their tuition for next year by double digit percentages, including University of Minnesota at 17.2 percent and Iowa at 19 percent.

"Penn State is not alone in having to recommend larger tuition increases this year than in recent years," he said. "Overall, tuition increases in the Big Ten for next year range between 8.5 percent and 19 percent for continuing students and from 19 percent to 34 percent for new freshman at the school implementing new tuition strategies."

Trustee Ted Junker said more attention should be paid to the dollar amount of the tuition rise, rather than the percentage increase.

"I think we really need to focus on it because that's what students and parents are focusing on," Junker said.

Spanier replied that very little of the new money coming in will be spent on anything other than mandatory expenses. He said employee salaries and benefits were one of the priorities in the budget. A salary increase pool of 3 percent will be created for merit-based increases as well as other considerations, while benefits are expected to increase by $11 million, including $9 million for health care. Also included in the budget is $7 million for graduate student health insurance and $8.8 million for facilities and maintenance.

Council of Commonwealth Student Governments President Mike Cooper spoke on behalf of both CCSG and the Undergraduate Student Government. He said after last year's 7.76 percent tuition increase, students stepped up lobbying efforts in Harrisburg, only to be told the problem was not with the state's funding but with the way the university managed its money.

"Until justification can be given, many legislators have explained that there is little they can do for Penn State students who struggle financially," Cooper said. "It has reached the point where students are caught in a finger-pointing battle between the administration and the Pennsylvania legislature, even though in the end, these very students will bear the burden of Penn State's lack of adequate funding."

He added that as tuition increases, more students find it difficult to afford to attend Penn State, thereby widening the knowledge gap in the state. Cooper also proposed that students have a more active role in the budget process and how the university spends its money.

Trustee Cynthia Baldwin spoke of the precarious position Penn State now finds itself in as it finds itself continually increasing tuition to meet perceived needs.

"I realize that at this time, it needs to be said, we are doing a balancing. We are maintaining the standards to which the people of Pennsylvania have been accustomed. We are balancing that against the money we need," she said.

Spanier said the university does its part in helping students with financial needs, mentioning that a majority of students receive grants, scholarships or tuition reductions.

Trustee Charles Brosius said while he was troubled by the tuition increase, the Penn State name has a lot of value, especially in the agricultural field.

"There is no stronger line in a resume than 'I am a graduate of the Pennsylvania State University College of Agricultural Sciences,' " he said. "We may be expensive, but we are the best."