HARRISBURG -- Penn State President Graham Spanier appeared yesterday before the State House Appropriations Committee to ask for an additional $17.6 million in state appropriations to help keep next year's tuition increases as low as possible.
Spanier asked the committee for the funds in addition to Penn State's current appropriation of $324.2 million, restoring it to the amount the university received during the 2001-2002 fiscal year.
If the committee decides to give Penn State the requested money, students will still see tuition increase by 5.8 percent.
The committee will decide how much money to give to Penn State after it officially reconvenes March 14.
Penn State's Board of Trustees will determine the official 2005-2006 tuition rate at its July 15 meeting.
Rep. Jake Wheatley, Jr., D-Allegheny, suggested that the university try to cut spending instead of receiving additional funding from the state.
Spanier said about "70 percent of the university's budget goes to the people," and any budget cut would result in either a tuition increase for students or a decrease in medical benefits for employees.
He added that Penn State has already "trimmed" about $100 million from its budget since 1992, and the additional funds will be used for the overall needs of the university.
"[The funds] will be used to help support basic operating cost increases in major areas such as insurance, libraries and strategic initiatives that will help us better serve our students and the commonwealth," Spanier told the committee.
Spanier said Penn State's biggest funding request is $30 million over the next three years for the Penn State Milton S. Hershey Medical Center.
The additional funding would help keep the cost of medical school tuition down and help curb the rising cost of medical malpractice insurance, Spanier added.
"It's a sad state to think that about $10 million of that money would probably go toward keeping up with the high cost of insurance these doctors have to pay," Rep. Scott Petri, R-Bucks, said.
Insurance premiums for medical center doctors have gone from $3 million to $20 million in the past 10 years, Spanier said.
Although Spanier met with the House Appropriations Committee yesterday morning, a meeting with the Senate Appropriations Committee, slated for yesterday afternoon, was postponed due to inclement weather.
Penn State Governmental Affairs Office Manager Judy Maxwell said she did not know when the Senate meeting would be rescheduled because it also needs to take place with representatives from the University of Pittsburgh, Temple University and Lincoln University; the other state-related universities.



