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Penn State president Graham Spanier is not willling to break the bank when the time comes to hire the Nittany Lions' next head football coach.

During a recent meeting with the university's board of trustees, Spanier said big-money contracts have ignited "an arms race" in major college athletics. Spanier added that Penn State does not want to use a million-dollar salary to lure a new coach.

"Our philosophy is that our coaches should be paid a fair salary, and we think we can pay a fair salary," Spanier told the board Jan. 21. "But we can't go out and be offering $1 million or $2 million salaries to coaches. ... I hope that being a coach at Penn State is attractive enough of an opportunity."

Those comments have sparked outrage among some Penn State fans and alumni, who see it as a concession that the school is not willing to pay the going rate for a top-shelf coach.

The university has long refused to release the contract terms for coach Joe Paterno, who is rumored to make at least $1 million per year. Last May, Paterno, 78, received a four-year contract extension.

Spanier seemed to step back from his stance in an e-mail response to questions submitted by the Tribune-Review.

"My comment to the board has been blown way out of proportion," Spanier wrote. "It was a casual answer to a question someone asked in an informal Q&A (session), not a definitive statement."

There is talk that Spanier's comments are an indication that Penn State will promote an assistant coach, rather than launch a nationwide search, when Paterno retires.

"When the time comes, we will hire the best candidate for Penn State," Spanier wrote. "We will, of course, give serious consideration to in-house candidates."

A half-dozen Division I coaches already earn in excess of $2 million a year. Pitt upper it offer to the $1 million range to land Dave Wannstedt.

Iowa coach Kirk Ferentz, who reportedly had drawn interest among Penn State officials as a possible successor to Paterno, recently received a contract extension through 2012.

Ferentz, an Upper St. Clair native, will receive a base salary of $1.2 million, but could double it through incentive clauses and longevity bonuses.

"It's a difficult marketplace," Penn State athletic director Tim Curley said "But, that's the marketplace we deal with and we've got to react to it. It is what it is."

Spanier is worried that salary escalation will make it impossible for the Penn State athletic department to remain self-supporting. The department pulls in about $3.5 million for every home game at Beaver Stadium, and football revenues pay for every other varsity-level sport on campus.

Despite a slight decline in football attendance this season, Penn State's athletic department did not run a deficit this year, Curley said.

"It's difficult to keep things self-supporting, not only because of salaries but because of things such as medical insurance and travel costs. Those costs have all gone up dramatically," Curley said. "Cutting programs has always been and would continue to be our last option."

Curley said the addition of a 12th regular-season football game -- a proposal that is expected to gain NCAA approval this spring -- would ease the financial strain. In addition, Penn State raised ticket prices by $2 for the 2005 season.

Spanier's original comments were in response to a question by trustee Ed Hintz. Hintz, a former president of the board of trustees, later said he was not alarmed by Spanier's response.

"He doesn't have a desire to short-change Penn State," Hintz said. "I think he's going to do whatever he feels is appropriate. And I think the trustees will be supportive of whatever he decides to do. "

Hintz said the board of trustees does not play any role when it comes to firing or hiring coaches, or determining salaries.

"We don't choose who he'll select as the dean of the college of education or the dean of engineering, so we also don't choose who he'll select as a coach," Hintz said. "It's up to president Spanier and the athletic director to make that kind of decision."

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