HARRISBURG -- Penn State President Graham Spanier appeared before the Pennsylvania Senate and House of Representatives yesterday to answer questions regarding the 2004-05 appropriations request.

Despite the 2.3 percent increase in state appropriations from last year, Spanier has requested funding be restored to the 2001-02 level.

"It goes without saying the commonwealth has been through an extraordinarily difficult economic cycle," Spanier said in his opening remarks to the House and Senate during separate hearings. However, he added, "We can't cut our way to greatness."

Spanier told the House and Senate that without increased funding, the university has only two choices.

"We either have to raise tuition or engage in program cuts," he said.

Rep. Kathy Manderino, D-Montgomery and Philadelphia, said Pennsylvania's public policy requires funding to be spread "wide instead of deep."

"Pennsylvania history has a historical plan of spreading a lot across the board with a broad brush," she said.

Rep. Dwight Evans, D-Philadelphia, questioned Spanier about the impact Penn State has on the commonwealth's economy.

Spanier said next to the government, Penn State is the "largest employer in the commonwealth of Pennsylvania."

Evans complimented Spanier on his efforts to promote economic growth in the commonwealth by not outsourcing either nationally or internationally.

"We always turn first to Pennsylvania for products and services," Spanier said.

Spanier also made a $30 million request for the Hershey Medical Center to be allocated over the next three years.

Spanier said the medical center needs funding because it handles the most expensive cases and accepts all students, regardless of their ability to pay.

For every $1 the state invests, it receives a $7.40 return, Spanier said.

"We are not asking for a handout," he said. "Look at it as an investment."

Questions regarding the move of the Dickinson School of Law were also raised in the House.

Rep. John Maher, R-Allegheny and Washington, asked Spanier why Penn State was considering moving the law school.

"Within the last decade, Penn State made a public commitment that the law school would stay in Carlisle," Maher said. "It is distressing to see Penn State break away from that commitment."

However, Spanier said he does not make the decision of whether or not the law school is moved. That decision is in the hands of the Board of Governors.

"We are not unmindful of the importance of the regional effects," Spanier said. "I hope people will take the long-range picture."

Spanier was also questioned about Penn State's recruitment and retention of diverse students.

"Penn State has had enormous success in recruitment of African-American and other minority groups," Spanier said.

He reported that since 1991, there has been a significantly greater increase in the number of black and other minority students than of white students.

"The gap is still there," he said. "We need to reduce the gap."

Rep. Matthew Baker, R-Bradford and Tioga, commented on Penn State's new system of background checks implemented after the discovery of former professor Paul Krueger's murder conviction.

"I want to commend your office for working on a policy that addresses this issue," Baker said.

Baker is working on legislation that will require criminal background checks for those who will be hired, but not applicants.

Baker asked Spanier if he would have hired the convicted professor if he had known his criminal history.

"I'm really not sure," Spanier said. "Those are difficult calls to make when someone has served their time and has been rehabilitated."

Rep. Lynn Herman, D-Centre, said he thought Spanier's speech was well received.

"Dr. Spanier pointed out very clearly that Penn State is our state's only land-grant institution and our state's major research university that provides the highest quality of education for students and tremendous [state-wide] economic development," he said.

Herman said Spanier's comments and concerns were taken well by members of the House Appropriations Committee.

"I believe Dr. Spanier made an outstanding presentation today and a justifiable request for an increase in state appropriations," he said.

After the House hearing, Spanier said the members gave his presentation a "thoughtful analysis."

"I think it is one of the best receptions we've had here," he said.