Tennessee State University Unveils Financial Stability Plan to Secure Future Success – Nashville Banner

Tennessee State University is working hard to improve its financial situation, but this comes with tough choices like cutting programs, scholarships, and staff. Interim President Dewayne Tucker, who has been leading without a salary since December, presented a five-year recovery plan aimed at stabilizing the university by 2030.

To tackle the budget deficit of $32 million to $37 million expected over the next two years, Tucker proposed reducing staff positions, limiting scholarship amounts, and implementing hiring freezes. He plans to use $154.5 million in state funds, which were previously set aside for capital improvements, to help cover operational costs.

These funds were allocated after a study showed that TSU, Tennessee’s only public historically Black university (HBCU), had been underfunded by over $544 million from 1956 to 2006. Recent estimations suggest this amount could exceed $2 billion. Although this money was intended for campus renovations, less than half has been spent, leaving room for new uses.

Tucker believes it’s crucial to prioritize keeping TSU operational. He plans to postpone significant renovations until the university achieves a balanced budget, projected for 2030. He also intends to seek the remaining nearly $300 million owed by the state to help address the university’s deferred maintenance needs.

Changing the purpose of the existing state funds will require legislative approval. House Speaker Cameron Sexton expressed his willingness to collaborate on this, emphasizing the need for accountability. He highlighted the importance of establishing benchmarks to ensure that TSU uses these funds effectively.

As part of the financial restructuring, Tucker’s plan includes capping internal scholarships at 20% of tuition starting in 2025 for new incoming students. This is expected to generate about $25 million in additional tuition revenue by 2030. Existing students will not be affected by this change, and external funding sources will remain intact.

Further budget cuts may involve reducing faculty positions, aiming to save an additional $11 to $13 million, alongside minimizing operational costs by $3 to $4 million. The commission also suggested examining enrollment numbers and possibly increasing tuition to boost revenue.

One option on the table is to end a program that gives discounts on out-of-state tuition for students living within 250 miles of the university. Sexton pointed out that TSU has higher administrative costs and lower tuition charges compared to other state universities.

Tucker mentioned that they will explore all avenues for reducing costs, even the potential elimination of tenure. In addition, TSU is looking to engage alumni and the community for direct donations. He aims to raise $100 million through community support over the next two years, assisted by various local business leaders who have already expressed willingness to help.

Although specifics on staff cuts weren’t provided, Tucker did note at a previous meeting that everything is under review, including the impact of tenure. The commission has shown a more supportive attitude toward Tucker’s leadership, highlighting the positive changes he has brought to the university.

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