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THEC Backs New UT Degree, Workforce-Focused Funding as Hargett Becomes Chairman

Commissioners approved a new business technology program and recommended $116.2 million tied to student outcomes.

THEC Backs New UT Degree, Workforce-Focused Funding as Hargett Becomes Chairman
Tennessee Higher Education Commission (THEC) Executive Director Dr. Steven Gentile. (Photo Courtesy of the Tennessee Higher Education Commission)

Tennessee higher education leaders approved a new University of Tennessee, Knoxville degree Thursday while recommending more state funding tied to student success and workforce needs.

The Tennessee Higher Education Commission (THEC) approved a Bachelor of Science in Business Administration in Information Systems for Business Innovation at UT. The program is expected to begin in the 2027-2028 academic year and will prepare students to use information systems, data, and emerging technology to solve business problems and improve how organizations operate.

Secretary of State Tre Hargett also became THEC chairman during the meeting. The commission highlighted his support for focused bachelor’s degrees and more efficient paths to a college credential.

New UT Degree Targets Technology Careers

THEC says program graduates could move into careers such as systems analyst, information security analyst, and information technology consultant. The program will use existing courses, faculty, and resources in UT’s Haslam College of Business, which could allow the university to add the degree without building an entirely new academic structure.

The new program comes as Tennessee puts more attention on whether college programs lead to useful skills and strong career options. UT recently had 60 undergraduate programs clear a. At the same time, Tennessee has also changed its higher education funding formula to more directly reward programs connected to good-paying, in-demand jobs.

THEC Executive Director Dr. Steven Gentile said the commission wants higher education investments to lead to clear results for students and the state.

“Today’s actions connect state investment and educational opportunities to the outcomes our state needs,” Gentile said in a press release. “They advance THEC’s Master Plan vision of every Tennessean earning a credential that leads to lifelong success and stronger communities.”

Funding Formula Rewards Student Success

Commissioners also approved THEC’s recommendation for $116.2 million in state appropriations for the 2027-28 fiscal year. THEC said the recommendation reflects the largest growth in student outcomes at public universities, community colleges, and Tennessee Colleges of Applied Technology in the 15-year history of the state’s outcomes-based funding formula.

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The formula rewards institutions for results such as students making progress toward a credential and completing degrees. Tennessee updated the formula this year, including changes to the Workforce Investment Premium, graduation measures, and dual enrollment, to more closely connect state funding with student outcomes and workforce demand.

The funding recommendation will now move into the state budget process, where the governor and General Assembly will decide final appropriations. THEC is also recommending another $5.9 million for the Tennessee Student Assistance Award, a need-based grant that helps eligible students pay for college.

The recommendation comes as public college enrollment has risen for a third straight year in Tennessee. Nearly 3,000 more students enrolled at public universities and community colleges this fall, increasing the number of students whose progress and completion will eventually factor into the state’s higher education funding decisions.

Workforce Focus

THEC approved a focused bachelor’s degree policy in July that allows colleges to propose some programs requiring as few as 90 credit hours. The policy is designed to give students a more streamlined path to graduation while still addressing workforce needs.

Commissioners also received an update on lottery-funded scholarships and THEC’s review of how those programs spend money and affect student outcomes. THEC plans to send lawmakers a report in December with recommendations aimed at keeping Tennessee’s scholarship programs financially sustainable over the long term.

The actions align with the state’s push to connect higher education funding, academic programs, and student aid around the goal of helping more students earn credentials that lead to successful careers. The approach also follows a broader push for stronger workforce pathways while keeping academic standards high.

New THEC Chairman Tre Hargett said Tennessee should continue making college more attainable without lowering expectations for students or employers.

“In recent years, Tennessee has developed a reputation for innovation in higher education which focuses on making college degrees more attainable while maintaining the quality students and employers expect,” Hargett said in the release. “In order for our state to continue our tremendous momentum, we must be relentless in preparing our students for the workforce needs of today and the future. The positive trajectory of our state (cannot) be sustained without the strength of higher education in Tennessee."

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