Penn State President Graham Spanier is telling university faculty and staff in a new memo that because of concerns over the proposed cut in state funding the university is canceling a salary increase that was set to take effect in July.

The memo sent out today detailed the plan to freeze the increases, calling it one of several decisions that the school must take to prepare its budget for the next fiscal year, the Centre Daily Times of State College reported on its website.

Spanier’s memo said he is continuing to  work with legislators in hopes of moderating the planned budget cut.

Gov. Tom Corbett’s proposal to cut spending by 50 percent for the state system schools and the “state-related” universities – Penn State, Pitt, Temple and Lincoln.

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