Faced with uncertainty over how much state and federal money it will receive, Penn State University has approved the smaller of two proposed tuition increases for 2009-10, 4.5 percent or $590 a year for the base in-state tuition rate at the main campus.

In a written statement issued after the board's executive committee approved the increase yesterday, President Graham Spanier said, "In spite of the risk of setting tuition rates without an appropriation, we are moving forward with the lower tuition option. Such a decision is most sensitive to our students and their families."

If anticipated state money does not materialize, the university's news release notes that an additional mid-year tuition increase may be needed as well as various cuts, including the elimination of a planned reserve, reduction of employee benefits and millions of dollars of other reductions.

Gov. Ed Rendell has proposed significant cuts in funding for all four state-related universities -- Penn State, the University of Pittsburgh and Temple and Lincoln universities. But the state budget is yet to pass and a revised application for federal stimulus money is yet to be filed.

Like Penn State, the University of Pittsburgh and Temple University -- where tuition increases of 4 percent and 2.9 percent, respectively, were approved for many students -- are leaving the door open to reconsider the tuition rate if enough funding is not restored.

Penn State this week is sending out bills for the first semester at the approved rate.

Spokeswoman Lisa Powers said the university has not raised tuition in the middle of an academic year for more than three decades.

The 4.5 percent increase in in-state base tuition on the main Penn State campus will bring tuition for two semesters from $13,014 in 2008-09 to $13,604 in 2009-10.

The base rate for out-of-state students at University Park will increase 3.7 percent or $886 per year.

At commonwealth campuses, in-state and out-of-state students will see an increase in the base rate of 3.9 percent per year.

Students pay varying rates depending on their year, course of study and residency status.

The higher proposal would have raised base tuition at the main Penn State campus by 9.8 percent in 2009-10.

Gov. Ed Rendell has proposed what Penn State officials calculate as a $61 million reduction in funding below the $338.4 million Penn State was expected to receive in 2008-09 before mid-year cuts.

In addition to a cut in the state appropriation, the governor excluded the state-related schools from the application for federal economic stimulus money because they are not under the state's "absolute control."

The U.S. Department of Education this week told Mr. Rendell that the four schools are public institutions and eligible for federal stimulus money.

The department said the governor can consider the schools' efforts to contain tuition costs and has discretion as to how much, if any, money to give them. Mr. Rendell was directed to file a revised application.

The University of Pittsburgh Thursday approved an increase of 4 percent in the base tuition rate for its Oakland campus. It previously approved a tuition freeze on its branch campuses.

However, if proposed state reductions take place, Pitt Chancellor Mark Nordenberg warned that Pitt may have to add a tuition surcharge within weeks -- and impose layoffs and other campus cuts.

Also on Thursday, Temple University decided to stick with a 2.9 percent cut in tuition for most students, approved in April, with the proviso that tuition could be revisited if a proposal to cut $21 million from Temple's state appropriation passes.

Lincoln University has not set tuition yet for fall.

In another Thursday action, the board of the State System of Higher Education -- whose 14 state-owned schools include California, Clarion, Edinboro, Indiana and Slippery Rock universities in Western Pennsylvania -- increased the in-state base tuition rate by 3.7 percent.

The system's final state allocation also has not been determined, but it was included in the federal economic stimulus application.