Penn State President Graham Spanier told legislators yesterday that if more state funds are not allocated to the university, university layoffs in certain departments may be imminent.

Gov. Ed Rendell's preliminary budget notably gave no appropriation increases to Penn State's agricultural program, to which it currently grants $54,881,000.

According to Spanier's testimony, if state appropriations to Penn State's agricultural program are not increased, layoffs in the department may be necessary.

"It would be very problematic," he said. "We'd have to lay off employees ... at a time when agriculture remains a very important part of our state's economy."

Spanier said since no incoming revenue is specifically linked to the College of Agriculture, the difference would have to be made up in reductions in the department's budget.

"If there's no increase in the budget, you're going to have to cut the budget," he said.

Citing fixed costs that propelled the university's expenses beyond the rate of inflation, Spanier asked for a 6.8 percent increase from last year's allocation, as opposed to the proposed 1.6 percent. He testified before the Pennsylvania General Assembly and Senate alongside Temple University President Anne Hart, University of Pittsburgh Chancellor Mark Nordenberg and Lincoln University President Ivory Nelson, who also requested increases on the recommended appropriation.

Gov. Ed Rendell's proposed budget allocates $347.4 million in state funds to Penn State for the 2007-2008 school year -- a 1.6 percent increase from last year's appropriation of $341.9 million.

Administrators said because of the low state appropriations, they have been forced to raise tuition to balance the budget. That has led to increased student debt at the state-related universities, they said.

Hart estimated Temple's average student debt upon graduation to be $27,000; Nordenberg estimated Pitt's as $20,000; Nelson estimated Lincoln's as $30,000; and Spanier estimated Penn State's to be $22,000.

"Our students are very mindful of what debt they will have," Spanier said. "That's not to say that it's easy for them or their families."

Spanier then responded to concerns that rising tuition and student debt were putting Penn State out of reach for lower-income students.

"We are working to make sure that doesn't happen," he said. "We want very much to keep our tuition as low as possible ... and keep our doors as open as possible."

State Sen. Patricia Vance, R-Cumberland, said constituents have repeatedly said they don't want additional tax increases to pay for budget items such as higher education allocations.

"We just cannot continue to do this," Vance said "I think the middle class has just reached its saturation point [in taxation]."

State Sen. Mary Jo White, R-Venango, agreed and assured the administrators that the lower appropriation increase was not a negative judgement on their progress.

"Two percent is not an insult to you," she said. "I believe it is a recognition of a problem in funding across the board."

She named education, medical assistance and prisons as the three major components of Pennsylvania's budget, all of which are facing, according to Senate committee chairman Gibson Armstrong, R-Lancaster, a "billion-dollar gap" in the budget.

"The squeeze is on," White said. "That is what is driving the 2 percent."