Millions of dollars in staff cuts and scholarship caps were part of a five-year financial plan Tennessee State University Interim President Dwayne Tucker presented to state officials this week.¶
The historically Black university faces a significant financial shortfall, with funds now expected to run short around May of this year. This comes following a tumultuous year of spending cuts, layoffs, and leadership shakeups. Tucker took the helm at TSU in December and has since been trying to navigate the university out of its severe financial troubles.¶
On Wednesday, Tucker faced leaders on the State Building Commission with an update, and presented a five-year plan designed to lead the university into financial stability. The plan would reduce TSU's budget deficit by $32 to $37 million over the next two fiscal years through staff cuts, scholarship caps, hiring freezes and other cuts.¶
TSU Interim President Duane Tucker (Photo by LEAD Public Schools)¶
A key part of the plan is a request from the university to allow it some flexibility with how it can utilize the remaining funds allocated by the state for capital improvements. In 2023, a report from the state Office of Legislative Budget showed the state had under-funded the university to the tune of $544 million over several decades. The former Biden Administration found an even larger underfunded amount, sending Governor Lee a letter that same year claiming Tennessee had underfunded TSU by $2.1 billion.¶
At the time, the state gave TSU $250 million in capital funding and roughly $154.5 million of that amount remains unspent. The university hopes to utilize those funds in other ways over the next several years.¶
"We believe this allows TSU the stability to get back on our feet financially," said Jim Grady, a financial consultant for the university. "It also allows us the opportunity for all our stakeholders to keep us honest about what we’re doing and to be held accountable and transparent to our students, to our parents, to our faculty, to our staff, to our alumni, and to the taxpayers of Tennessee.”¶
President Tucker urged legislators to consider the university’s performance when appropriating funding moving forward. He also mentioned the additional money identified in the underfunding, going on to say he hopes that money will eventually be allocated, and that a continued revenue stream will help the university in recruiting future students.¶
“If I talk to ten families a day, the majority of them have the same question: If my child enters Tennessee State University this fall, will Tennessee State be around four years from now?” said Tucker.¶
House Speaker Cameron Sexton, R-Crossville, who sits on the Building Commission, said he is open to revising how TSU can utilize the money left in its capital improvements fund.¶
