Tennessee State University proposes 6% tuition increase to address budget deficit

The Tennessee State University (TSU) Board of Trustees convened on June 12, 2025, to discuss critical financial matters, including proposed tuition and fee increases for the fiscal year 2025-2026. The meeting began with an overview of the university's financial status, presented by Jim Grady from Alvarez and Marcel, who highlighted the university's ongoing budget challenges.

Grady reported that TSU is currently facing a $39 million budget deficit and emphasized the need for immediate action to achieve fiscal sustainability. He noted that the university had previously presented a five-year plan to the State Building Commission, which outlined a need for approximately $95 million to address its financial issues.

The board reviewed the Tennessee Higher Education Commission's (THEC) recent decision to set a guiding tuition increase range of 0 to 6.5% for public higher education institutions in Tennessee. Grady explained that TSU's proposed tuition increase aligns with this range, specifically recommending a 6% increase in maintenance and mandatory fees for both in-state and out-of-state students.

The proposed increases would result in an additional cost of approximately $270 per semester for in-state students and varying amounts for out-of-state students, depending on their classification. For example, out-of-state students living within a 250-mile radius would see an increase of about $449 per semester, while out-of-state scholars would face a $539 increase.

Grady reassured the board that even with these proposed increases, TSU would remain the most affordable option for in-state students compared to other public institutions in Tennessee. He provided a comparative analysis showing that TSU's tuition rates would still be lower than those of other local governing institutions (LGIs) and historically black colleges and universities (HBCUs) in the region.

The board engaged in discussions regarding the implications of these increases and the necessity of balancing revenue growth with cost reductions to address the university's financial challenges. Following the presentations and discussions, the board prepared to vote on the proposed tuition and fee increases, as well as the estimated budget for the upcoming fiscal year.

In conclusion, the TSU Board of Trustees meeting underscored the university's ongoing financial struggles and the steps being taken to address them through proposed tuition adjustments. The board's decisions in the coming weeks will be crucial in shaping the university's financial future and ensuring its continued commitment to providing affordable education.