ORONO -- The University of Maine System trustees approved a two-year budget package Tuesday that will seek an additional $17 million in state funding in 2010 and 2011.

The proposal calls for a 4.5 percent increase each of the two years, a jump of $8.5 million in 2009-10 and $8.7 million in 2010-11. State appropriations would jump from $186 million this year to $194.5 million in fiscal year 2010 and $203.2 million in fiscal year 2011.

The plan, which must be approved by lawmakers before it is finalized, also calls for a $19.1 million reduction in system operating costs over the last year, spokesman John Diamond said.

University officials said they hope the plan will allow them to keep next year's tuition increase below 6 percent.

"This request helps us maintain academic quality," said Allyson Hughes Handley, president of the University of Maine at Augusta. "I think it's a very conservative budget request."

The request comes on the heels of the Legislature's decision last year to flat-fund appropriations throughout the entire system.

With no additional money flowing in from the state, the campuses were forced to absorb negotiated increases in salary, benefits and soaring energy costs, Handley said.

The Augusta campus raised tuition 9.2 percent, the smallest increase throughout the system.

"We weren't happy to have to do that, but we had to absorb our increases," Handley said.

The proposal approved by trustees on Monday is based on a detailed financial report from Chancellor Richard Pattenaude and Chief Financial Officer Joanne Yestramski. While the plan addresses increased spending for salaries, benefits and fuel while remaining below a 6 percent tuition increase, there is no extra money for additional programs or facilities.

"There isn't a lot of wiggle room," Handley said. "Any new initiatives need to be absorbed within the institutions."

UMA already is streamlining costs by reassigning staff and creating a university advancement office without additional spending. The campus reduced costs by 2 percent this year.

"We're just being resourceful and creative," Handley said. "Everyone from the president's office right down to maintenance have all had to make sacrifices."

University officials know there is still a lot of work to do with legislators and the governor's office before the budget achieves final approval.

"We're hearing there are going to be some significant budget balancing reductions that the state will need to deal with," Handley said. "We recognize there are going to be some very difficult decisions."

"We will be approaching this as a university community," Handley said. "We're making some hard decisions on our campuses right now."

MaineToday Media, Inc. contributed to this report.

Craig Crosby--623-3811, Ext. 433

ccrosby@centralmaine.com