Pennsylvania Gov. Ed Rendell proposed a state budget that would grant state-related universities a 2.3 percent increase in funding from last year.

Yesterday's proposed budget includes increases of 5 percent for community colleges, 3 percent for the State System of Higher Education, and 2.3 percent for the state-related universities of Penn State, University of Pittsburgh, Temple and Lincoln.

The increase of $7 million for Penn State is part of Rendell's plan to increase the state budget by 4 percent, from $21.5 billion to $22.3 billion.

Penn State spokesman Bill Mahon said the increase is positive. "We are certainly glad to see the numbers go up instead of appropriations going down, as they have over the last few years."

The 2003-2004 budget, signed by Rendell on Dec. 22, 2003, granted Penn State appropriations in the amount of $307.8 million. Because the budget was not approved until six months after the start of the fiscal year, Penn State did not receive its funds until winter break.

Abe Amoros, a Rendell spokesman, said the budget includes increases in education to help convince students to stay in Pennsylvania after graduation.

With the proposed increase, Penn State would receive $314.7 million for the 2004-2005 fiscal year.

However, Mahon said the increase was less than the $344.8 million Penn State wants to request, an amount that would restore funding to 2001-2002 levels. "It's not what we were hoping to receive, but it's good to see the amount increase," he said.

Although the proposal did not reach the 2001-2002 level, if approved it will mark the first increase in three years.

Amoros said Rendell is confident the budget will be approved by legislators as scheduled. "The governor has established himself as the 'education governor.' He is interested in not only pre-K and K through 12 education but higher education as well."

Penn State President Graham Spanier will travel to Harrisburg this month to present the university's appropriations request to the state legislature.

In the meantime, Mahon said the university would focus on making "our best case possible" before the state.

The Associated Press contributed to this report.