However, the appropriations were $14.7 million less than last year's initial funding level.

This continues the declining contributions from the state to the university over the past few years.

Rendell spokesman Michael Lukens said there are similar trends across the state and the lack of funding isn't limited to higher education.

"It's a reflection of the economic conditions," he said. "We are tightening revenues across the board and hoping for an economic recovery."

Even though legislatures are just done with the 2003-2004 budget, they are now working on the 2004-2005 budget as scheduled.

Kendig said the university is asking that appropriations for the 2004-2005 school year be restored to the 2001-2002 level of about $344.8 million.

"We are obviously optimistic but realize there are significant financial challenges to the state," Kendig said. "We feel it's a modest request forwarding the decrease in the past few years."

Kendig said receiving this amount is necessary to stopping large increases in tuition.

"There are always year-to-year cost increases -- inflation costs -- if we can get the appropriations requested it should enable us to hold [tuition] increases to 4 percent, which is reasonable," he said.

Mike DiRaimo, director of state relations at Penn State, said the university has to be patient until the government presents its proposed budget on Feb. 3.

After this, it will host a series of budget hearings from Penn State as well as other agencies that are requesting money.

When the hearings have been completed, it is the job of the general assembly to reconcile the requests with the government proposals, he said.

DiRaimo and Lukens said the budget should be passed by late June and they don't expect the same delays, which occurred this past semester.

"It was an unusual circumstance and it is unlikely there will be the same degree of difficulty this year," DiRaimo said.

Kendig said Penn State President Graham Spanier will attend a state Senate hearing on Feb. 27, but a hearing in front of the state House has yet to be scheduled.