Tennessee State University officials told state leaders Monday that the university is currently looking for new ways to save money, amid concerns about financial mismanagement.¶
According to Interim President Dwayne Tucker, who was just appointed to the role after former Interim President Ronald Johnson’s unexpected resignation last week, TSU leaders are still working through some finer details within future plans to stabilize the university’s finances. However, he said during Monday’s meeting with the State Building Commission that current TSU leaders are already “going through every department within the university” to determine what positions and expenditures could be eliminated or reduced to avoid running out of money next year.¶
Tucker said the university is also “trying to find three or four experienced executives,” including a new CFO, to help improve financial management practices. He added that he expects to have more details on the university’s plan when TSU administrators return from the holiday break.¶
“What I want to do is provide some stability to the university in terms of resources,” he said. “It's probably going to take me, at least with the holidays, another month to put together a plan that I think would be comprehensive enough in terms of cash requirements with some degree of contribution that the university can make towards solving some of our cost issues that we have, and I'm looking forward to doing that.”¶
Tucker also thanked commission members for supporting capital projects to construct new facilities at the university, as well as for authorizing a $43 million infusion into TSU’s operating budget last month to help maintain operations. He said support such as this from the state has been crucial for the university in recent months as it works to stabilize its finances.¶
“What TSU needs really right now is some positive news,” he said. “I also want to say I appreciate the support the state has provided Tennessee State, especially with the resources and financial support, because without that in November, we would probably be out of cash. That has been very helpful to the university.”¶
Tucker said that in terms of cash flow, the university is “at least good through April of next year.” He added that there is still “a lot of opportunity at TSU to become more efficient” in how it uses funding.¶
“I think if we put together the right plan, that plan could be executed efficiently and effectively where we can mitigate some of that expense before we get [to May],” he said. “I think it's incumbent on us to really look deep across the organization and then figure out how we adjust the university to meet the current projections around enrollment.”¶
At last month’s State Building Commission meeting, analysts noted an abrupt increase and decrease in enrollment after many students received one-time scholarships. Tennessee Secretary of State Tre Hargett said he believed there should’ve been a better plan in place to keep students with those federally-funded scholarships enrolled at TSU. ¶
“To have the rug yanked out from under them with no plan at all for what’s going to happen in years two or three or four, that is the most heartbreaking, saddest thing,” Hargett said at that meeting.¶
Noting concerns such as these, Tucker said the university plans to make some changes to how the university manages scholarships.¶
“The process needs a lot of work, and I think if we can put the right resources there, coming out of this year and starting differently in January, we can pick up some momentum and get a lot of things done in a short period of time,” he said.¶
Lawmakers also pressed TSU leaders about whether the university will continue its contract with former President Glenda Glover, who they believe bears much of the responsibility for the university’s current financial situation. TSU Board of Trustees Vice Chair Charles Traughber told the committee that while TSU is no longer associated with Glover, her continued payment under that contract could be “a source of potential litigation.”¶
“I’m finished with that association. I'm looking forward to moving forward,” he told lawmakers after he was asked about his opinion on TSU’s association with Glover. ¶
Tucker and other TSU leaders will meet with the committee again in February to provide more updates about the university’s financial situation and plans moving forward.¶
