[{"_1":2,"_88":-5,"_89":-5},"loaderData",{"_3":4,"_26":27},"root",{"_5":6,"_17":10,"_18":19,"_20":21,"_22":10,"_23":-5,"_24":-5,"_25":10},"user",{"_7":8,"_9":10,"_11":10,"_12":-5,"_13":-5,"_14":15,"_16":-5},"roles",[],"isAuthenticated",false,"isPremium","planName","subscriptionStatus","featureFlags",{},"insightsBudget","isDevelopmentHost","userPreferences",{},"recaptchaSiteKey","6LcvOJcUAAAAAHsB-gPGfGktcRlKpH7OTIU_dMTD","isImpersonating","impersonation","affiliateStatus","isFreedomPortal","routes/v2/article/layout",{"_28":29,"_30":31},"notFound",true,"relatedArticles",[32,76],{"_33":34,"_35":36,"_37":38,"_39":40,"_41":42,"_43":44,"_45":46,"_47":48,"_49":50,"_51":52,"_53":54,"_55":56,"_57":58,"_59":60,"_61":62,"_63":64,"_65":66,"_67":68,"_69":70,"_71":72,"_73":74,"_75":74},"mediaId",6637096,"mediaKeyId","2591488-2700aaf6f3de763bbd0dd154b1cdb373","parentId",2591488,"title","TSU finance committee outlines bridge-to-sustainability plan; proposes 4% in-state tuition increase, 20% freshman scholarship cap and funding flexibility","audioSeconds",278,"startMs",1219000,"endMs",1497000,"viewUrl","/Search/View?dp=1&key=2591488-2700aaf6f3de763bbd0dd154b1cdb373&start=1219&end=1497","thumbnailUrl","https://assets.pipeline.soar.com/2591488-2700aaf6f3de763bbd0dd154b1cdb373/thumbnail_1219000.jpg","articleUrl","/articles/6637096/Tennessee/TSU-finance-committee-outlines-bridge-to-sustainability-plan-proposes-4-in-state-tuition-increase-20-freshman-scholarship-cap-and-funding-flexibility","mediaUrl","https://secure.pipeline.soar.com/6637096-7e0536ec25ba30d759e8d9c375e2c756/orig.mp4?Expires=1775232706&Signature=Xx6Pdyr3FLRdsGl6WNesGVwhBj7KPfgtaTEG~TiJMOcn6bDmrgQnpZkuL2Of~B-9D01-9GBgl6IUFFQaztoPDpfiEujoOEGWy0QzGJf5ft3E6ngWvnfz4951Vrhb0hH0KDmy1AIzhOMCkb2teKuhweQD8chIqTO73jirUbHuxNE4wkjLWQCHr~5t-WM4oK-N8KC~F1-jlGee1UC0GOXKt-6uIzvmuV0wmoYEkoijhNz2wjOkRRqX50vB7zsSi~h8HQh3Inb0311rqCAN--fhkZeIwR8KbU0wscJGYheiXYOZImvxxK8H0czJ6Gf9RosLu0IbTejnm7YF4FuXtiNRaw__&Key-Pair-Id=KUT5TJCACFTXG","author","Tennessee State University","date","2025-03-12T00:00:00Z","article","Tennessee State University finance officials presented a multi-part “bridge to sustainability” plan to the finance committee on March 12, 2025, asking trustees to support near‑term measures to stabilize operations and to approve a special board session after the Tennessee Higher Education Commission (THEC) sets its binding tuition range.

Presentation and the funding ask

Presenters reviewed a plan built around three elements: use of remaining state appropriations from a prior $250,000,000 allocation, internal cost reductions, and revenue adjustments including tuition and scholarship policy changes. Presenters said about $150,000,000 of the previously appropriated $250,000,000 remained available and that the university is seeking authority to expand permissible uses of those funds beyond deferred maintenance to include operating support while the institution implements multi‑year adjustments.

The pro forma and timeline

Officials showed a five‑year pro forma that, under current assumptions, projects a cumulative funding need that was highlighted as roughly $95,700,000 by the model's later years (presenters referenced that figure in discussing the fiscal 2029 outlook). The presentation said the university expects to move toward break‑even on the operating forecast by approximately 2029–2030 if the recommended actions are implemented.

Tuition, THEC guidance and recommended scenario

University staff briefed trustees on tuition modeling and scenarios. Staff explained the framework used to calculate a recommended in‑state increase to cover fixed costs (inflation) and a portion of personnel costs not fully funded by the governor’s budget. The model calculated that covering the governor‑recommended 2.6% salary pool and projected non‑personnel inflation would require an approximate 5.4% revenue increase; staff said the THEC guiding range available when materials were prepared was 0–4% for in‑state tuition, and that THEC staff later indicated a recommended range up to 5.5%.

Given the THEC uncertainty, presenters recommended a conservative operational step: a 4% in‑state tuition increase for fiscal year 2026 (consistent with the then‑guidance) together with one of several out‑of‑state options. The preferred approach presented (scenario 3) would implement a 4% in‑state increase and a 4% adjustment to the 250‑mile out‑of‑state rate in year one, while maintaining current full‑freight and scholar out‑of‑state rates for the coming year and moving to a single out‑of‑state rate by fiscal year 2027. Staff said that under the presented scenario the fiscal year‑to‑fiscal year revenue pickup is modest (a few million dollars in aggregate) and that the tuition recommendation would be finalized only after THEC sets the binding range; the trustees would be called to a special board session at that time.

Scholarships: 20% cap for incoming freshmen and current scholarship levels

Staff presented a scholarship strategy tied to the tuition model: limit institutional scholarship (unrestricted tuition discounting) for each incoming first‑time freshman cohort to 20% of that cohort’s tuition and fees. Presenters said the cap would apply to the freshman cohort budgeted for fall 2025 (the presentation used an assumed cohort of about 950–980 first‑time freshmen and a working pool of about $2.4 million for the freshman cap under the pro forma). Presenters emphasized this cap would apply to future freshman cohorts and that existing scholarship commitments to current juniors and seniors (described as roughly $17–$18 million) would run through as committed and not be cut short.

Current scholarship picture: presenters told trustees TSU expects to end fiscal year 2025 with roughly $33,000,000 in institutional scholarship and discounting. They said roughly $11,000,000 of that is a TSU full‑ride category and about $6.5 million is university scholarships; around $17–$18 million of the institutional scholarship total is currently committed to juniors and seniors and therefore will naturally “play through” over the next two years.

Enrollment and constraint issues

Staff said the pro forma assumes a conservative 2025 freshman cohort (about 950–980 first‑time freshmen). They warned that scholarship totals are sensitive to actual enrollment; if the freshman cohort is larger than the model assumes, the 20% cap dollar amount will also grow. The presenters also noted NCAA Division I scholarship and sport‑sponsorship requirements constrain how deeply scholarship pools can be reduced for athletics and band without additional planning because of gender balance and minimum sport counts.

Budget process, operations and cash

Finance staff walked trustees through budget‑vs‑actual reporting through January 2025. They reported recognized tuition and fees near $75,000,000 to date (noting an end‑of‑year allowance for bad debt under discussion) and operating cash balances in the range of roughly $35,000,000–$37,000,000 at the time of the meeting. Staff said payables were largely under control and that months‑end liabilities over 60 days were minimal.

Fundraising and institutional advancement

Dr. Tony, TSU’s institutional advancement officer, told the committee that through March the university had recorded about $4,300,000 in fundraising for the fiscal year against a $10,000,000 internal goal. He said alumni giving trends are improving for the first time since FY2019 and described plans to implement a new development CRM (Blackbaud) and to strengthen staffing; Dr. Tony said the advancement office currently has limited fundraiser capacity (three fundraisers including himself) and would need additional staffing to support a larger capital campaign.

Trustee direction and next steps

Trustees did not vote on tuition or scholarship policy on March 12. Staff were instructed to return with final tuition recommendations after THEC sets the binding range and to provide more detailed enrollment sensitivity analyses, a finalized scholarship policy (staff noted draft language that would require board approval for any exception to the 20% cap), and clearer reconciliation of state appropriations, federal funds, and projected tuition revenue to the consolidated budget.

Ending

Committee members were briefed on multiple levers the university plans to use to reach financial sustainability: targeted scholarship limits for incoming freshmen, personnel and non‑personnel cost reductions, use of remaining state appropriations to bridge operating shortfalls, and a modest tuition adjustment timed with THEC action. Staff emphasized that the measures are part of a multi‑year plan and that trustees will be asked to act on tuition and any scholarship policy exceptions once THEC sets the official guidance.","mediaType","Video","parentTitle","03-12-25 TSU Board of Trustees Finance Committee Meeting","oneSentenceSummary","Tennessee State University finance officials presented a multi-part “bridge to sustainability” plan to the finance committee on March 12, 2025, asking trustees to support near‑term measures to stabilize operations and to approve a special board session after THEC sets its binding tuition range.","taxTitle","Tennessee State University, Public Universities, School Districts, Tennessee","taxId",79446,"location","Tennessee","headline","","shortSummary",{"_33":77,"_35":36,"_37":38,"_39":78,"_41":79,"_43":80,"_45":81,"_47":82,"_49":83,"_51":84,"_53":85,"_55":56,"_57":58,"_59":86,"_61":62,"_63":64,"_65":87,"_67":68,"_69":70,"_71":72,"_73":74,"_75":74},6637101,"TSU finance committee: federal grant draws suspended; key NEFA award appears lost, university pauses spending",273,218000,491000,"/Search/View?dp=1&key=2591488-2700aaf6f3de763bbd0dd154b1cdb373&start=218&end=491","https://assets.pipeline.soar.com/2591488-2700aaf6f3de763bbd0dd154b1cdb373/thumbnail_218000.jpg","/articles/6637101/Tennessee/TSU-finance-committee-federal-grant-draws-suspended-key-NEFA-award-appears-lost-university-pauses-spending","https://secure.pipeline.soar.com/6637101-48b2842ed1a388b1a45dd7fde3633084/orig.mp4?Expires=1775232706&Signature=FZz7A-rTKIPq3yBRIcPZntQHOmInjGwHZKM0buM9XQsnN4sh5nT9zF3FyAZYg4ipirTt6fKZ1Ymz6-~9CmGg646mEGCftm14mrs0DO0E1L7BSElD134vgfmFkydeMyJcojPkvl96orDWR0BrEvUb7lPvOgI2QpFAZEtqYLrDrFeoPwMTcd8xk3Zn5bvLlYwChGakR9tFiuZMxBFDTmsugfMiFuv4-64qzxxHU6LRf6DrZ~7~76AxYNDRbziI5I47eIXp3qjnvDN-MCSb70FVDNAR3PrmL2-pDwmOggiILi8rVhKwR7tjh9r4kxp0dFHvbNqAkTkjsUxfvnM9yaGM~w__&Key-Pair-Id=KUT5TJCACFTXG","Jim Gray, TSU grants lead, told the Tennessee State University Board of Trustees’ finance committee on March 12, 2025, that the university is operating under a temporary pause on federal grant spending after multiple USDA/NIFA awards were suspended in February.

Gray said the university identified “70 active federal grama [grants]” that were suspended, representing about $45,000,000 in available balances. He told trustees that around $23,000,000 of that total was restored on or around March 3, while “we have $22,000,000 that remains suspended.” Gray also said an $18,000,000 NEFA award with roughly $14,400,000 remaining “appears that that grant is not coming back,” and that the university is treating that $14,400,000 as suspended indefinitely.

Why it matters: Gray said the suspended awards fund personnel and student supports. TSU identified about 62 employees fully funded on federal grants and another 112 who are partially supported. Gray said grant-related changes could affect staff and students and that the university is working to absorb costs in the short term. He said the university paused all federal grant spending “to mitigate any sort of increasing any exposure” while it evaluates the situation and coordinates with federal officials.

What the committee heard and what the university is doing

- Suspension and partial restoration: Gray described a two-stage outcome after the February suspensions. About $23,000,000 of the roughly $45,000,000 in suspended grant balances was restored in early March, while about $22,000,000 remained suspended. Of the restored amount, Gray noted that an $18,000,000 NEFA award had roughly $14,400,000 left to draw but now appears not to be reinstated.

- Operational response: Gray said TSU paused spending on all federal grants from Feb. 28 “until today” as a risk-mitigation measure. He said the campus has held daily briefings under President Tucker’s leadership and is working with federal contacts and internal grants accounting to determine when and how spending can safely resume.

- Employee and student impacts: When asked whether faculty, staff or programs would be eliminated, Gray said the university intends to “run this through the next 90 days” and that, for now, programs and people should not see immediate changes. General Counsel Brown clarified the timing: notices tied to a federal termination letter would trigger a 30‑day window for the university to submit incurred expenditures for reimbursement, and TSU expects notices around the six‑week mark tied to that 90‑day period. A staff speaker identified as Brady said the university has about six graduate assistants and roughly 33 undergraduate students whose scholarships are connected to the affected grants; Brady said those undergraduates “won't be affected this year, but they won't be eligible for that scholarship come this fall.”

- Financial exposure and indirect cost changes: Gray flagged a separate risk: a proposed cap of 15% on indirect costs for certain NIH/NA grants. He said TSU estimated that change would cost the university “roughly a million to $2,000,000.”

- Next steps: Gray said the university has identified internal sources that can cover some costs for about 90 days and is prioritizing submission of allowable expenditures if a termination letter is issued. He told trustees that once an official USDA termination letter arrives a 30‑day clock begins to submit the last 30 days of expenditures for reimbursement.

Trustee questions and committee response

Trustees asked about staff notice and student support. Trustee Winton asked whether the grant loss would lead to personnel changes; Gray said the university expects to operate through a 90‑day period before making longer‑term employment decisions and that notices would be handled in keeping with grant terms. Trustee Smith Knight asked whether employees hired specifically for the affected grants were aware of the suspension; staff confirmed those employees were aware and that the university would follow required notice periods.

Committee members requested follow-up information on the number and classification of affected employees and students, and on whether any scholarships attached to the suspended grants can be covered from other funds. Gray said the university will continue daily monitoring and report back to trustees.

Ending

Committee members were not asked to take formal action on the grants update at the March 12 meeting. Trustees were told TSU will continue coordinating with federal offices, that spending will remain paused where necessary, and that staff will return to the committee with further details on personnel and student impacts and any reimbursement opportunities tied to official federal notices.","Jim Gray, TSU grants lead, told the Tennessee State University Board of Trustees’ finance committee on March 12, 2025, that the university is operating under a temporary pause on federal grant spending after multiple USDA/NIFA awards were suspended in February.","actionData","errors"]

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TSU finance committee outlines bridge-to-sustainability plan; proposes 4% in-state tuition increase, 20% freshman scholarship cap and funding flexibility

TSU finance committee: federal grant draws suspended; key NEFA award appears lost, university pauses spending