Tennessee State University (TSU) officials outlined new strategies at Thursday’s Board of Trustees meeting to prevent a $46 million deficit, as the university works to avoid running out of money.¶
Among the strategies laid out in their financial action plan, TSU leaders said the historically Black university will seek funding from external sources, such as donations and fundraisers. In addition, the university plans to focus only on hiring personnel for “mission critical” positions. The university is also reducing over 115 “duplicate or non-productive contracts,” which account for about $3.5 million in total.¶
To help further mitigate the financial crisis, university officials also plan to repurpose $32.3 million in COVID-19 relief funds. Overall, they said, the new plan will leave TSU with a $3.7 million surplus.¶
“We’re cutting back on capital assets – furniture, PCs, things that are not grant related,” Senior Advisor and Interim Executive Vice President Daarel Burnette said of the financial overhaul.¶
Thursday’s five-hour board meeting followed last week’s State Building Commission meeting, where state leaders criticized the university for financial and operational mismanagement. State policymakers said they took issue with poorly planned scholarship programs, which created abrupt increases and decreases in enrollment after the COVID-19 pandemic. They also questioned why the university has continued to pay a $800,000 contract to former President Glenda Glover, who they believe bears much of the responsibility for the university’s current financial situation.¶
“Why would you keep her on as someone who would advise you on things going on at campus?” House Speaker Cameron Sexton, R-Crossville asked during last week’s meeting with TSU leaders.¶
The meeting also comes after state legislators ousted TSU's board in March over similar financial concerns. University supporters have however continually made the case TSU has been underfunded compared to other state colleges that are not HBCUs (historically black colleges and universities).¶
TSU President Ronald Johnson said Thursday that the new financial plan will be an ongoing effort, and will require teamwork across all levels of leadership. Burnette and Johnson told the board that the next major step will be to strengthen the university’s reserves, in order to further reverse the financial situation interim leaders inherited from previous leadership.¶
“The issues and the problems we’re experiencing today just didn’t happen last year,” Burnette said. “This has been a barrel wave that’s been building up since COVID ended, and maybe even going back further than that.”¶
